Dependent Relative Tax Credit
Information
Parents/guardians and people who care for dependent relatives may qualify for the Dependent Relative Tax Credit.
Rules
You can claim Dependent Relative Tax Credit if you maintain at your own expense:
- A relative, including a relative of your spouse or civil partner, who is unable to maintain himself or herself as a result of old age or ill-health
- A widowed parent or surviving civil partner parent of either yourself or your spouse or civil partner, irrespective of the state of his/her health
- A son or daughter of either yourself or your spouse or civil partner who lives with you and on whose services you must depend as a result of old age or ill health.
Health expenses and your dependent relative
Before 2007 the main value of the Dependent Relative Tax Credit lay in the fact that you needed to claim this credit in order to claim medical expenses for that relative. This is no longer the case, since the 2007 tax year. If your dependent relative, or any other person for claims from the 2007 tax year onwards, incurs health expenses and you contribute to them, you may be entitled to claim tax relief for the amount you paid. You can claim relief on expenses like doctors' bills, maintenance or treatment in hospital, prescribed drugs and medicines. If the person is living in an approved nursing home and you contribute to the nursing home fees, you may also be entitled to claim some of the expenses involved.
Rates
The value of the Dependent Relative Tax Credit depends on:
- The cost of maintaining your dependent relative - the tax credit is the cost of maintenance up to €70 in 2012.
- If the income of your dependent relative exceeds €13,873 in 2012, no tax credit is due (the same income limit applied in 2010 and 2011). This figure is based on the maximum of the State Pension (Contributory) for people over 80 plus the Living Alone Allowance plus the Island Allowance plus €280. All of your dependent relative's income (for example, social welfare payments, pensions and deposit interest) is taken into account for income limit purposes.
How to apply
If you are a PAYE taxpayer and are claiming the tax credit for a dependent relative, you should download and complete Form DR1 (pdf) or apply for the tax credit using the PAYE On-line service. You can also write to your local tax office, outlining the tax credit you are claiming and providing the following information:
- The name and address of your relative
- Your relative's relationship to you
- Your relative's Person Public Service number (if known)
- Your relative's age and if appropriate, the nature of his or her incapacity
- The source or sources of your relative's income and the amount or amounts of their income
- Details of any financial help given by others.
If you are claiming the tax credit for a son or daughter who lives with you and on whose services you depend, you should complete Form DR2. Alternatively, you can write to your local tax office outlining the tax credit you are claiming and providing the following information:
- The name of your son or daughter
- Your son or daughter's Personal Public Service number, if known
- Whether your son or daughter lives with you
- Source(s) of income and amount(s) of income
- Your date of birth and the nature of your infirmity.
If you pay tax under the self-assessment system, you can claim the tax credit by completing the "Dependent Relative" section on your annual tax return.
Where to apply
Visit the Revenue contact locator webpage to find the Lo-call number for your region. You can find more detailed contact information for your region.
Language
Related Documents
- Older people's tax credits and reliefs
Special taxation arrangements apply to people aged 65 and over. Find out more. - Taxation and medical expenses
Tax relief is available in Ireland for private health and long term care insurance. It is also available for certain medical expenses. - Introduction to income tax credits and reliefs
Tax reliefs reduce the amount of tax that you have to pay. Find out about the different types of income tax relief that apply to your circumstances.
Contact Us
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 9pm) or you can visit your local Citizens Information Centre.