Cathal Crowe
Question:175. Deputy Cathal Crowe asked the Minister for Finance if he will consider making the carer's allowance a tax-free payment; and if he will make a statement on the matter. [42133/24]
View answerThursday, 17 October 2024
Questions (175)
Written answers
Carer's Allowance is a means-tested payment for carers who look after individuals in need of care and attention on a full-time basis. The Carer's Allowance, in common with many other social welfare payments, is regarded as a taxable source of income. The level of tax payable, if any, on such income is then determined by the personal circumstances of the recipient, taking into account factors such as the individual's other sources of income and the available tax credits and standard-rate bands.
As the Deputy will be aware the Irish income tax system is highly progressive with those on lower incomes paying proportionately less tax than those on higher incomes. Therefore, the reality is that an individual who is in receipt of a means-tested payment will in many cases not have an income tax liability as the available tax credits will reduce any tax liability to nil.