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27th Oct 2022

Medical expenses, college fees and 4 other reasons why parents can claim back tax this year

Ann Cronin

Brought to you by Irish Tax Rebates

If you haven’t already applied for these tax credits, you absolutely should.

Everyone is feeling the pinch of inflation at the moment, and it’s a tough time for families all around the country trying to get by.

That’s why it’s more important than ever to check you’re keeping hold of every penny you’re entitled to, especially as we come into the costly winter months.

One easily forgotten way to save yourself some cash is to claim back any tax you might have been entitled to over the last few years. As a parent, there are several different tax credits you might be able to make a claim under – and they could save you thousands every year!

While it can be tough to navigate all of these tax credits by yourself, the good news is Irish Tax Rebates is making it so easy to claim back any cash you’re entitled to.

Irish Tax Rebates’ team of experts can do all the hard work for you, by checking if you’re entitled to any money back and putting in a claim on your behalf. They have the highest average tax rebate in Ireland at the lowest fee and as a brilliant bonus, you won’t be charged a fee if you’re not entitled to any tax rebates. No catch!

You can apply online right here.

With that in mind, here are some of the tax credits you might be entitled to as a parent…

1. Home Carers Tax Credit

If either you or your spouse works part-time or stays at home full-time to mind your children, you may be entitled to the Home Carers Tax Credit.

You can claim Home Carers Tax Credit if you or your spouse work at home caring for a dependent person. Dependents can be children for whom child benefit is payable, a person with a disability, or someone over the age of 65 who requires full-time care. To claim this, the dependent must be living in the same property, a neighbouring home, or within a 2km radius.

The amount of credit you’re entitled to will depend on your income but since the 2023 Budget, the Home Carers Tax Credit will be worth a handy €1,700 if the home carer had an income of less than €7,200 per annum So it really is worth looking into if you think you might qualify. 


2. Single-Person Child Carer Credit

If you’re a single parent, you might be able to claim some tax back under the Single Person Child Carer Credit (SPCCC).

The SPCC is payable to the parent with whom the qualifying child lives for most of the year – meaning at least six months out of the year or more. Only children under the age of 18 qualify under the SPCCC unless they are in full-time education, provided you support and maintain them at your expense.

In the 2023 Budget, it was announced that the rate band for Single Parents will increase to €44,000. Depending on your effective rate of tax you can get a tax rebate of either €1,650 or €2,450 per annum. 

3. Widowed Parent Tax Credit

If you are a widowed person with dependent children, you may be entitled to claim the Widowed Parent Tax Credit. 

To qualify for the Widowed Parent Tax Credit, you must not be remarried or cohabiting by the start of the tax year, and you must have a qualifying child living with you for all or most of the year.

A qualifying child must be under 18 years of age at the start of the tax year, but you can claim it for kids aged over 18 if they’re in full-time education or qualify for the Incapacitated Child Tax Credit.

You can claim this tax credit for five years after the death of your spouse. The Widowed Parent Tax Credit amounts to €3,600 in the first year after your spouse’s death and decreases gradually over the 5 years.

4. Incapacitated Child Credit 

You can claim a tax credit if you are the parent or guardian of a child who is permanently incapacitated, either physically or mentally. It is called the Incapacitated Child Tax Credit. This credit is worth €3,300 per year per child. 

A single mum working in administration was eligible for the incapacitated child credit due to her child’s illness and received a rebate of €17,636.02. This rebate was for the past four years, 2018-2021 and it just goes to show what parents are missing out on by not claiming the correct credits where eligible. 

If you are not the parent of the child, you can claim the credit if you have custody of the child and maintain them at your own expense.

Where the child is maintained by one parent only, that parent is entitled to claim the full amount of the tax credit. However, where the child is maintained by more than one person, the tax credit is divided between them in proportion to the amount paid by each towards the general costs of maintaining the child. 

5. Medical expenses for dependants

Have your kids had a lot of visits to the GP this year? Maybe one of them has had a hospital stay over the last few months, or you’ve been spending a lot on prescriptions recently.

Parents are entitled to claim tax back on medical expenses paid for their dependents, up to 20%. Anything covered or reimbursed by an insurance policy or medical card doesn’t qualify for tax relief. However, you can get your money back on nearly everything else you pay, including doctor and consultant fees, prescriptions, treatment in a hospital, and speech and language therapy, among other expenses.

Routine dental and ophthalmic care does not qualify for tax relief, but you can claim tax back on the costs of non-routine dental treatments, including crowns, braces, the surgical removal of wisdom teeth, and also laser eye treatment.

5. Tuition fees for dependents

If you pay for your child to attend a third-level college, foreign language course, or an IT course, either full-time or part time you may be eligible to claim tax back at the standard tax rate of 20%.

For third-level tuition fees, the maximum amount you can claim is €7,000 per course, per person, per academic year.  For full-time courses the first €3,000 in expenses is disregarded and for part-time courses the first €1,500.

You cannot claim tax back on fees that are funded by grants, scholarships, or your employer.

To qualify for tax relief on fees for a foreign language or IT course, the programme must not cost less than €315 and must be less than two years in duration. It also can’t be a postgraduate course and must be completed with the awarding of a certificate of competence (not just a certificate of attendance).

Many families in Ireland qualify for a range of tax benefits, yet thousands of parents and guardians fail to claim tax back each year. This is mainly because they are unaware of the range of benefits available to them or are unsure how to claim tax back. Claim your tax back today with Irish Tax Rebates HERE

Brought to you by Irish Tax Rebates