If you are caring for a dependent relative you may qualify for the Dependent Relative Tax Credit.
COVID-19 and re-opening of Revenue’s telephone helplines
Revenue’s public offices remain closed while public health measures are in place. The national PAYE helpline has re-opened Monday to Friday, from 9.30am to 1.30pm. Queries can also be sent through myEnquiries.
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
- Your widowed parent, or your spouse or civil partner’s widowed parent, irrespective of the state of their health
- Your son or daughter (or your spouse or civil partner’s son or daughter) who lives with you and on whose services you depend as a result of your old age or ill health
Health expenses and your dependent relative
You do not have to be in receipt of a Dependent Relative Tax Credit to claim tax back on medical expenses you may have paid on behalf of a family member.
If you pay qualifying health expenses on behalf of another person (whether they are dependant on you or not) you may be entitled to claim tax relief on the amount 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 a nursing home and you contribute to the nursing home fees, you may also be entitled to claim some of the expenses involved. The only requirement is that the hospital, nursing home or other similar institution must provide 24-hour nursing care on site.
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 2020.
- If the income of your dependent relative exceeds €15,060 in 2020, no tax credit is due (the income limit was €14,753 in 2019 and 2018, €14,504 in 2017, €14,060 in 2016, €13,904 in 2015 and €13,837 in 2014). 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 for a dependent relative, the easiest way to claim the Dependent Relative Tax Credit is to use PAYE Services which is available through Revenue’s myAccount service.
Alternatively, you can claim the credit by completing the relevant claim form, either DR1 (pdf) for a relative or parent or DR2 (pdf) for a son or daughter or a child. The completed form should be sent to your Revenue office. It will take longer to update your tax credits and issue a Tax Credit Certificate if you submit a paper claim.
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.
You can get more information on how to claim the credit on Revenue’s website.
