Section 465 of the Taxes Consolidation Act (“TCA”) 1997 provides for the Incapacitated Child Tax Credit (ICTC) where a claimant (parent or person with custody) maintains at their own expense their child (or a child they have custody of) who is permanently incapacitated by reason of mental or physical infirmity from maintaining themselves, where the incapacity occurred as follows:
• If under the age of 18 years, permanently incapacitated by reason of mental or physical infirmity means the infirmity is such that there would be a reasonable expectation that if the child were over the age of 18 years the child would be incapacitated from maintaining themselves.
• If over the age of 18 years at the start of the year, the individual must be permanently incapacitated by reason of mental or physical infirmity from maintaining themselves and had become so permanently incapacitated before they had attained the age of 21 years.
• If over the age 21 years, had become so permanently incapacitated after attaining the age of 21 years, but while they had been in receipt of full-time instruction at any university, college, school or other educational establishment.
Further information and guidance is also available on Revenue’s website at: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/incapacitated-child-credit/index.aspx
Revenue have advised me that when a child is maintained by more than one person and the couple are jointly assessed for income tax purposes, the ICTC is treated as a combined tax credit. The couple can decide which spouse receives the credit or split it between them to best suit their specific circumstances and to maximise available tax credits against their taxable income. If more than one child is permanently incapacitated, a claim can be made in respect of each child. In such circumstances the overall ICTC claim is treated as one combined tax credit which can be distributed between the jointly assessed couple as they choose.
In cases where the couple are not jointly assessed, and the child is maintained by more than one person, the tax credit is apportioned between them.
In relation to the case raised by the Deputy, Revenue has further advised me that they have received correspondence on this matter and advise that additional information and supporting documentation is required to finalise this application.
Revenue has confirmed to me they will contact the couple directly in the coming days to clarify what remains outstanding in this case.
