The home carer’s tax credit is available to married couples who are jointly assessed, where one spouse stays at home full time to care for a dependent person for example children, the aged or incapacitated persons.
The credit of €810 is deductible against gross income tax due on the income of the assessable spouse. To qualify for the credit, the spouse who is full time in the home must have income of less than €5,080. If income is between €5,080 and €6,700 a reduced credit applies.
The tax credit is the same regardless of the number of persons being cared for and a dependent person does not include a spouse. If the dependent person is a relative they can be cared for outside the home if they reside within 2km of the claimant and there is a direct communication link such as a telephone or alarm system between the two houses.