Incapacitated Child Tax Credit

Revenue have issued guidance in relation to the tax credit available for a child who is permanently incapacitated. The current tax credit available is €3,300 where a child who:

• Is under the age of 18 years is permanently incapacitated by reason of mental or physical infirmity, or
• If over the age of 18 years at the commencement of the year:
  • is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated before he or she had attained the age of 21 years, or
  • had become so permanently incapacitated after attaining the age of 21 years but while he or she had been in receipt of full-time education at any university, college, school or other educational establishment.

This tax credit and the dependent relative tax credit may be available to claim but not both in respect of the same child. A doctor’s certificate or medical report must be submitted with all initial claims outlining details of the condition.

Where there is a reasonable expectation that the child will be able to earn an income from working, following treatment of an infirmity, then the credit is not available. Examples include diabetes or dyslexia. Revenue would not accept that the child is permanently incapacitated from maintaining himself or herself in these particular cases.

Should you have any queries or require further information, please contact a member of the tax team.