Tax Tips

Dependent Relative Tax Credit: Budget 2020

Many people in Ireland are caring for a dependant relative. If you’re eligible to claim the Dependent Relative Tax Credit, you should be aware that this allowance has been increased from €70 per year to €245 per year as part of the 2020 budget.


What is the Dependent Relative Tax Credit?

If you care for a dependent relative, you are likely eligible for this allowance. A qualifying relative is any relation who relies on you to provide their care – typically due to illness, disability, or old age. They can be your blood relative, or a blood relation of your spouse or civil partner.

  • A typical example is someone who is caring for an elderly parent who may be widowed.
  • Another example is a parent who is caring for a child who has a disability (this must be legally recognised by a medical practitioner).


Does the dependent relative need to live with me?

No, the dependent relative does not need to live with you. They may also live in their own residence, or they may live in an approved nursing home.


How do you define caring for a relative?

You do not need to be a full time carer for your dependant relative.

Caring can be defined as:

  • Full time physical aid
  • Part time physical aid
  • Financial aid (for example contributing to or paying medical bills, nursing home care etc).


What are the changes outlined in Budget 2020?

On Tuesday 13th October 2020, Minister for Finance Paschal Donohue announced an increase in the allowance from €70 per year to €245 per year.

This is an increase of 250% and will have a significant impact for those in receipt of the allowance.


How can I claim the Dependent Relative Tax Credit?

At Irish Tax Rebates, we find that many people are eligible for this tax credit but are either unaware of it or unsure how to claim it. As a result, many people in Ireland are missing out on a tax rebate they are entitled to.

If you think you might be eligible for this rebate, or would simply like a review of all of your taxes to see if you are due a rebate on any number of allowances and tax credits, simply apply using our 60 second form:

New Customers: Apply here.

Existing Customers: Apply For Additional Rebate 

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