What’s the main difference between One-Parent Family Tax Credit

and Single Person Child Carer Tax Credit?

One-Parent Family Credit Single Person Child Carer Credit
It was abolished from 31.12.2013. It was introduced from 1.1.2014 and replaces the One-Parent Family Credit.
Can be claimed by both single parents of the same child. Can be claimed only one of the parents of the same child. The claiming parent can give up of the credit in favour of another parent.

One-Parent Family Credit

This tax credit was abolished from 31. December 2013. However, it can still be claimed for last 4 years, up to 2013.

For years 2014 onwards, a new tax credit ‘Single Person Child Carer Tax Credit’ can be claimed by a single parent with a qualifying child(ren).

You can claim a Single Person Child Carer Credit if you are a single parent, who has day-to-day responsibility for the upbringing of the child and the child is living with you on your own expense. Single parent is someone who is single, widowed, separated or divorced.

A One-Parent Family Tax Credit is a credit that you can claim if a child resides with you for the whole or part of the tax year and:

  • you are not jointly assessed to tax as a married person,
  • you are not living with your spouse,
  • you are not cohabiting,
  • you are not receiving widowed person tax credit.

A qualifying child is a child:

  • born during the tax year, or is under 18 years of age,
  • who, if over 18 years of age:
    • is receiving full-time education for a minimum of two years, or
    • is permanently incapacitated and was so before the age of 21 or, if the incapacity happened after age 21, it was during a receipt of full-time education.

Tax credit is not apportioned between claimants. Each qualifying claimant can claim the full tax credit for a dependent child if the above conditions are met and the child resides with each claimant for at least part of the relevant year.

How to claim

You can complete Form OP1 – Claim for One Parent Family Tax Credit (PDF, 1.1MB).

If you pay tax under the self-assessment system, the tax credit is claimed by completing the ‘One-Parent Family Tax Credit’ section on your annual tax return.

Single Person Child Carer Credit

This tax credit replaces the One-Parent Family Credit from 1. January 2014.

You can claim a Single Person Child Carer Credit if you are a single parent, who has day-to-day responsibility for the upbringing of the child and the child is living with you on your own expense.

You will qualify for the tax credit, if:

  • you are not married (unless separated) or cohabiting,
  • you are not jointly assessed to tax as a married person,
  • you are not receiving a widowed person tax credit.

A qualifying child is a child:

  • who is born during the tax year, or is under 18 years of age,
  • who, if over 18 years of age:
    • is receiving full-time education for a minimum of two years, or
    • is permanently incapacitated and was so before the age of 21 or, if the incapacity happened after age 21, it was during receipt of full-time education.

If you have more qualifying children you can get only one tax credit.

Primary claimant

You are the ‘primary claimant’, if the qualifying child resides with you for the whole or the greater part of the year (more than six months).

If you are the primary claimant and you do not wish to claim the credit, (e.g. because you do not have sufficient taxable income to use the credit fully), you can give up the credit in favour of another person, (the ‘secondary claimant’), who is caring for the child as well.

If you retains the credit as the Primary Claimant, no other individual can get a credit for any of the children you act as Primary Claimant.

Secondary claimant

You can claim the tax credit as the ‘secondary claimant’ only if primary claimant gives up the tax credit.

You are the secondary claimant if the qualifying child resides with you for at least 100 days in the year.

How to claim

Revenue wasn’t sure, in advance, who was entitled to the new credit, so they automatically allocated the new credit to individuals who are shown by the Social Welfare’s records to be in receipt of Child Benefit and who claimed One Parent Family Credit for 2013.

Claim it as the Primary Claimant – complete Form SPCC1, (PDF, 286KB), fill in Section A and sign the Declaration in Section C (leave section B blank) and submit to your Revenue Office.

Primary Claimant giving up the credit – to give up the credit in favour of another claimant complete Form SPCC1, (PDF, 286KB); fill in all sections A, B, C and submit to your Revenue Office.

Claim it as the Secondary Claimant – complete Form SPCC2, (PDF, 332KB) fill in all sections, sign the declaration and submit to your Revenue office. The primary claimant needs to complete all sections A, B, C in Form SPCC1,  sign the declaration and submit it to his or her Revenue office.

Benefit

The value of the single person child carer credit (SPCCC) is €1,650 per annum. This has the effect of reducing a claimant’s tax liability by €31.73 per week. In addition to this a claimant is also entitled to an extension in the standard rate band of €4,000, increasing the rate band from €32,800 to €36,800. Where a claimant’s income exceeds €36,800, this additional rate band is worth a maximum of €840 per annum or €16.15 per week. The maximum value of the credit and the additional rate band is €2,490 per annum or €47.88 per week.