Single Parents Tax

Posted on | July 8, 2010 | No Comments

Wednesday Club on Single Parents Tax Credit

Aaaaah, the Single Parent Tax Credit.  This is the tax credit that causes the most consternation in our office.  Bit like some Blur song I can’t quite remember the name of, you have people getting it that shouldn’t and people that should, not getting it.

And this isn’t some piddling Tax Credit worth €70 a year – this can really add up.  For instance we had a call a few weeks ago from a fella who had received a notification from Revenue that he owed them €14,000 from incorrectly claiming Single Parent Tax Credit.  On the other hand, we have reclaimed refunds for people of up to €9,000 where they should have been receiving tax benefits for being a single parent that they were not aware of.

Battle of the Sexes

We find that women are far more organised with their taxes.  End of (as they say).  And in no situation is this more prevalent than regarding the Single Parent Tax Credit.

In the first case, guys just are not as well informed about Single Parent Taxation.  We also find that guys can be insecure in their position as Single Parents, worried about rocking the boat and doing anything that may affect their ex-partner’s rights, or their rights regarding the children.  This is a misplaced worry.

I suppose the third case worth mentioning, is men are far more likely, either through chancing their arm or not investigating the eligibility correctly, make a dodgy claim that down the line will end up in a hefty bill like the one mentioned earlier.

Can I Claim Single Parent Tax Credit

Here are the most important eligibility Criteria:

Not only single but also widowed, divorced and separated parents who have a dependent child can claim for One Parent Family Tax Credit.  The child can be adopted, step child or any child you have custody of.

Dependent child is:

- Child  under 18 or

- Over 18 in full time education

Both parents are entitled to this tax credit as long as the child stays with them at least one night a year.

Further condition to qualify:

- You cannot be living with a partner and

- Cannot be entitled to married tax credit

As single parent you can claim €1830 in 2010. Being eligible for this tax credit also means that your tax rate band increases.  So you can earn up to €40400 (instead of normal single person rate of €36,400) in 2010 before you have to pay higher rate.

Review every year.

If you are due single parent tax credit at the start of the year, then you are due it for the year.  But circumstances change, so make sure you check are you still eligible at the start of each year – as Revenue assume you continue to be eligible for this until you tell them otherwise.

Thanks to Slavka for Prepping the Wednesday Club this week and hope you found this useful!

If you need more information contact us on 05991 73300 or via our website

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Welcome to the Red Oak Tax Refund Blog, where we will discuss money matters, tax and in particular tax refunds relating to PAYE employment in Ireland. If you have any topics you would like discussed, send us a mail to refunds@redoaktaxrefunds.ie and happy reading!.

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