Tag: tax credit

Single Parent Tax Credit

July 27, 2013

This additional tax credit is available to single parents who have dependant children. The extra tax credit is equal to the single persons tax credit so that the combined tax credits for a single parent equal the normal married persons tax credit. In addition a qualifying single parent is entitled to a slightly increased 20% tax rate band.

With effect from 1 January 2014, the additional credit is only available to the principal carer of the child.

A dependant child, for the purposes of this additional tax credit is a child who at the beginning of the year of assessment is under 18 years of age or if over 18 is receiving full time education. A child who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself will also qualify as a dependant child regardless of age provided they were so incapacitated before reaching 21 years of age. A child also includes a stepchild, a child whose parents have not married, a child who has been informally adopted and an adopted child.

This additional single parent tax credit is not available to an unmarried couple who are living together.

Widowed Persons Tax Credit

July 27, 2013

If you are widowed during the tax year, your tax status changes. The extent of this change depends on whether you were the person responsible for making tax returns or whether your deceased spouse was the person responsible for making tax returns.

If the surviving spouse was the person responsible for making the tax returns there is no particular change in the tax year when you are widowed. You continue to be entitled to the normal married persons tax credit and other associated claims e.g. home carer’s tax credit etc.

On the other hand if the surviving spouse was not the person responsible for making tax returns they are treated as a single person for the remainder of the tax year from the date they were widowed. You are entitled to both the single persons tax credit and an additional special tax credit for the year of bereavement, which brings the combined tax credit to the same amount as a married persons tax credit. If you have dependent children you do not get any additional tax credits apart from these in the year of bereavement. In addition you are entitled to the normal single persons 20% tax rate band for the remainder of the tax year.

In the years following bereavement, if you have dependant children you are entitled to both the single parent tax credit and an additional tax credit for each of the following 5 tax years. You are also entitled to a slightly greater 20% tax rate band than a single person.

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