Accountants in Galway GBS & Co Review the One-Parent Tax Credit
What is a One-Parent Family Tax Credit?
A One-Parent Family Tax Credit is a tax credit, that is available to a single parent, or a person who has custody of and maintains a child who is living with him or her. This can include someone who is single, widowed, a surviving civil partner, deserted, separated (from spouse or civil partner), divorced or whose civil partnership has been dissolved.
How can I claim entitlement to the One-Parent Family Tax Credit?
A One-Parent Family Tax Credit is a credit that can be claimed if a child resides with you for the whole or part of the tax year and:
you are not jointly assessed to tax as a married person or a civil partner
you are not living with your spouse or civil partner
you are not cohabiting
you have not been widowed or become a surviving civil partner in the year for which you are making the claim and are not in receipt of the basic personal tax credit to which you are entitled as a result of your bereavement for that year.
With regard to whom can I claim the One-Parent Family Tax Credit?
A claimant with a qualifying child can claim this credit.
A qualifying child means a child:
born during the tax year, or who is under 18 years of age at the beginning of the tax year
who, if over 18 years of age:
is receiving full-time education or undergoing a fulltime training course for a trade or profession for a minimum of two years, or
is permanently incapacitated either physically or mentally from maintaining himself or herself and has become so before reaching 21 years of age, or has become permanently incapacitated after reaching the age of 21 years but while in receipt of full-time education, or undergoing a full-time training course for a trade or profession
and a child
of whom you are the parent (including a step-parent or an adoptive parent) or, if not a parent, of whom you have custody and who you maintain at your own expense for the whole or part of a tax year.
What relief am I due?
One tax credit will be given for any year of assessment irrespective of the number of dependent children that resided with you in that year. The credit, where due, is given in addition to your normal Personal Tax Credit. It is not apportioned between claimants. Each qualifying claimant can claim the full tax credit for a dependent child provided the qualifying conditions are met and the child resides with each claimant for at least part of the relevant year.
If your claim is in respect of the current tax year an amended Tax Credit Certificate will be sent to you and your employer will make any refund due to you.
If your claim is for a previous tax year or during a period of unemployment, any refund due will be sent directly to you by Revenue. Tax refunds can be paid by cheque or to your Irish bank account. It is not possible to make a refund directly to a foreign bank account.
Further details from Ciaran Guilfoyle at Galway Accountants GBS & Co on www.easypayroll.ie