Deputy Broughan was recently contacted by an accountancy practice who wants to raise awareness about the right of parents of incapacitated children to a tax credit. The practice informed Deputy Broughan that they had worked on some cases where families were unknowingly entitled to the Incapacitated Child Tax Credit and received back-dated payments.
Information on this Tax Credit is available on the Revenue.ie website and it sets out the parameters around those who may be entitled to this credit and the relevant application form. If you already receive the Dependant Relative Tax Credit then you cannot also claim this credit. The website states that “the incapacity of the child must be such that it permanently prevents the child from being able in the long term (i.e when over 18 years of age) to maintain himself or herself independently. If the incapacity can be corrected of relieved by the use of any treatment, device, medication or therapy, for example, coeliac disease, diabetes, hearing impairment which can be corrected by a hearing aid, etc. the child will not be regarded as permanently incapacitated for the purposes of this relief.” Some of the examples given include cystic fibrosis, Down Syndrome and Acute Autism.
As per usual tax relief claims, they must be made within 4 years of the relevant tax year. More information is available online or by calling Revenue for the Dublin Region on 1890 333 425.
Deputy Broughan says “This may be very useful information for some families with an incapacitated child, or indeed children. I thank the practice for bringing this information forward to local representatives and would encourage those who feel they may be entitled to it to access further information. So many families are under severe financial pressure that any sort of tax relief or credit may be a help to them.”