Over 60,000 families in Ireland are missing out on tax rebates worth thousands, experts have warned.
Single income families with children or dependents are entitled to the Home Carer Credit which could result in refunds of up to €4,100 over four years.
The credit, which stands at €1,500 in 2019, can be claimed by any married couple or those in a civil partnership where one person is the home carer for one or more dependent persons including kids under 18.
Eileen Devereux, commercial director at Taxback.com, said: “Two years ago, we shined a light on this issue in the press and the feedback was strong.
Over 60,000 stay-at-home Irish parents could be owed €4000 in tax back but haven't claimed it
“In that year the numbers claiming the credit rose by 5,000.
“However, there is still a gulf between the number of households entitled to the credit and those actually claiming it, so we think now is as good a time as any to revisit our campaign to spread the word in the hope that it might prompt more people to claim this year.”
While CSO statistics state that there were 146,698 couples in 2016 where one partner said they were “looking after home/family” but recent figures from Revenue said that only 85,900 people submitted a claim for the Home Carer Credit in the same year.
Ms Deveruex said: “According to Revenue, tax returns in 2016 indicate a total of 85,900 people claimed the credit at a cost to the exchequer of €77.9 million – which is an average of €906 each.
“Given that Revenue treats taxpayers as units this means a total of 85,900 families claimed the credit.
“If we contrast this with the estimated 146,698 households with children where one parent is looking after the home, it appears that only about 59% of families are claiming their entitlement, which is not surprising when you consider the number of people that are aware of its existence.”
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There was a €300 increase announced in the Home Carer Credit during last year’s Budget bringing it up to €1,500.
Ms Devereux added: “Given the current burden of childcare costs for many families, the tax credit could be a factor for any couple considering a one income household, as it allows the stay at home partner to work up to a limit of €7,200 a year (the credit is reduced for incomes above that figure and is capped at €9,200).
“Revenue have made a concerted effort to inform taxpayers of this entitlement and proactively suggest this to suitable people on their systems.
“They do look out for married/civil partnership and one income families with children, but despite their best efforts, our anecdotal data suggest that this credit is at best misunderstood and frequently unknown.”
