Dáil Éireann Debate, Thursday - 19 June 2025
244. Deputy Brian Stanley asked the Minister for Finance to give serious consideration to introducing tax credit increases for separated fathers who are financially supporting their children through maintenance payments and other weekly costs; and if he will make a statement on the matter. [33407/25]
Amharc ar fhreagraSection 1025 of the Taxes Consolidation Act (“TCA”) 1997 provides that there is no tax relief available for the paying spouse in respect of child maintenance payments. Maintenance payments in respect of children are also not taxable in the hands of the children or the receiving spouse.
Section 1031J TCA 1997 provides for similar tax treatment in respect of maintenance payments made by separated civil partners and certain cohabitants.
The reason for this treatment is that maintenance payments in respect of children are treated the same way as if the taxpayer was providing for the child or children out of his or her after-tax income, which is in line with the tax treatment for all other parents, where the cost of maintaining their child or children is not tax deductible.
As such, I have no current plans to review the current position on tax relief for child maintenance, or to introduce a credit in the manner suggested by the Deputy.
