Dáil Éireann Debate, Tuesday - 9 December 2025
296. Deputy Pa Daly asked the Tánaiste and Minister for Finance if the Revenue Commissioners have been instructed by the Department of Social Protection to automatically apply tax to carer’s allowance and carer’s benefit from January 2026; the practical steps Revenue Commissioners will take; if any exemptions or hardship protections will apply for low-income households; and if he will make a statement on the matter. [69553/25]
Amharc ar fhreagraThere is a long-standing data sharing arrangement between Revenue and the Department of Social Protection which facilitates the operation of both the tax and welfare systems. Data has been shared in relation to taxable welfare payments such as pensions and long-term benefit payments for a number of years which allows tax to be deducted through the year instead of creating a full year’s tax bill at the end of the year.
Carer's Allowance and Carer's Benefit are subject to Income Tax but are exempt from USC and Pay Related Social Insurance. As this data has not been shared it is the recipient’s responsibility to declare this income to Revenue in a tax return.
I have been informed by Revenue, that in conjunction with the DSP, they met with Family Carers Ireland and Care Alliance Ireland earlier this year to confirm information detailing the taxable amount of carer’s income would be shared in the same way they do for Pensions and other long term payments.
I understand this will mean carers income will be treated in the same manner as many other payments. If an individual stops receiving a carer's payments during the year, DSP will notify Revenue and an amended Tax Credit Certificate will issue to confirm the recipients records have been updated accordingly.
I am advised that Revenue has established a dedicated phone line at 01-738 36 37 to assist with any queries.
