Incapacitated child tax credit

Pikachu8

Hi there new to boards.ie.
My six year old son was recently diagnosed with Asperger's Syndrome. We were told that we could avail of the above tax credit, however on receiving the form I'm not so sure. One of the questions for our Doctor is that our son will be unable to care for himself after he is
18. I would hope that he can lead an independent and fulfilling life, but I just don't know what the future holds. We are in receipt of the Domicilliary Allowance as our son was diagnosed with Type 1 Diabetes since he was a baby. He struggles in school and I would hope that he would improve, especially as he will need to calculate his carbohydrates to insulin every day. Would hate to go ahead and have this backfire on us later on. Having an extra amount in my husbands pay packet would make a big difference and help towards extra costs with speech therapy etc. Any advice, comments would be most appreciated. Thanks

gerrybbadd

Pikachu8 wrote: »

Hi there new to boards.ie.
My six year old son was recently diagnosed with Asperger's Syndrome. We were told that we could avail of the above tax credit, however on receiving the form I'm not so sure. One of the questions for our Doctor is that our son will be unable to care for himself after he is
18. I would hope that he can lead an independent and fulfilling life, but I just don't know what the future holds. We are in receipt of the Domicilliary Allowance as our son was diagnosed with Type 1 Diabetes since he was a baby. He struggles in school and I would hope that he would improve, especially as he will need to calculate his carbohydrates to insulin every day. Would hate to go ahead and have this backfire on us later on. Having an extra amount in my husbands pay packet would make a big difference and help towards extra costs with speech therapy etc. Any advice, comments would be most appreciated. Thanks

The Diabetes part doesn't apply for this credit. It's self managed very successfully.

However, the Aspergers may qualify, but it would depend on the caveat that your son wouldn't be able to maintain himself after reaching 18.

Pikachu8

Thanks, Gerrybbadd.

Whether he will be able to maintain himself is the big question that I feel a lot of parents have no answer to post diagnosis. He still puts his shoes on the wrong feet and zones out a lot of the time when you are trying to talk to him or ask him to do something. Will he be able to recognise a hypoglycaemia and treat accordingly? He's only six now and I know early intervention is key.

gerrybbadd

Pikachu8 wrote: »

Thanks, Gerrybbadd.

Whether he will be able to maintain himself is the big question that I feel a lot of parents have no answer to post diagnosis. He still puts his shoes on the wrong feet and zones out a lot of the time when you are trying to talk to him or ask him to do something. Will he be able to recognise a hypoglycaemia and treat accordingly? He's only six now and I know early intervention is key.

I'm type 1 myself, so feel your plight.

The thing is, a lot of doctors will tick the box anyhow. I've seen forms coming in even for Diabetes only, with the Doctors signature on it

scheister

with Incapacitated child tax credit Revenue set a very high bar for claiming. It is almost a case but not 100% that they want the child's life written off before they will grant it. I have heard of a case of a child not being Autistic enough to qualify.

This can be a very high bar as while your son is putting his shoes in the wrong feet now who knows in 10 years with certain training and help what he will be able and not able to do.

Summer8181

Hello, I'm new here. I have a couple of questions. My wife was on illness benefit and now is approved of invalid pension. I have noticed that my tax credits have reduced from €42,000 odd to €33,000 odd. Is this because these are taxable and i have to pay tax on her invalid pension?

Second question. I have just submitted a claim for incapacitated child tax credit. As my wife is claiming invalid pension, will this effect the claim or prevent me from getting approved going forward or getting back dated as her claim was only approved last week. Any help appreciated

Dev84

My son is autistic and i am in receipt of it. However its unlikely my son will lead and independent life.

joseph_a_f

Summer8181 wrote: »

Hello, I'm new here. I have a couple of questions. My wife was on illness benefit and now is approved of invalid pension. I have noticed that my tax credits have reduced from €42,000 odd to €33,000 odd. Is this because these are taxable and i have to pay tax on her invalid pension?

Yes this is taxable, contact Revenue if you are jointly assessed and you can be allocated your wifes PAYE tax credits to reduce the tax due.

Summer8181 wrote: »

Second question. I have just submitted a claim for incapacitated child tax credit. As my wife is claiming invalid pension, will this effect the claim or prevent me from getting approved going forward or getting back dated as her claim was only approved last week. Any help appreciated

No, this will not have any affect on your claim for Incapacitated Child tax credits.

wiggle16

scheister wrote: »

with Incapacitated child tax credit Revenue set a very high bar for claiming. It is almost a case but not 100% that they want the child's life written off before they will grant it. I have heard of a case of a child not being Autistic enough to qualify.

This can be a very high bar as while your son is putting his shoes in the wrong feet now who knows in 10 years with certain training and help what he will be able and not able to do.

No offence but this is nonsense. The child does not have to be written off for life. Revenue does not determine whether or not the child is incapacitated, so there is no "high bar" for claiming.

OP, if your son has Aspergers, you may be entitled to the Incapacitated child credit - next time you're going to the GP, bring the form with you and ask about it. The doctor will sign the "declaration of medical practitioner" section if they deem it unlikely that he will be able to fully maintain himself (ie, live independently) when he is an adult. Revenue defers to the doctor's opinion, so there is no "high bar" that you have to leap for it to be approved.

If the doctor signs the form, you will be entitled to the credit. If the doctor doesn't sign the form, it's because the doctor believes he can live independently, which can only be a good thing.

Best of luck OP

Summer8181

joseph_a_f wrote: »

Yes this is taxable, contact Revenue if you are jointly assessed and you can be allocated your wifes PAYE tax credits to reduce the tax due. I already have my wife's tax credit but these have been greatly reduced. It must be because she is on invalidity pension


No, this will not have any affect on your claim for Incapacitated Child tax credits.

Thanks Joseph. Does it take long to get approval for child tax credit. I sent it off 10 days ago.

Summer8181

I used to have a standard cut off of €42000 but now it is €33000. My tax credits used to be 4600 now it is 8000. Am I better or worse off. Please explain

Squatter

Summer8181 wrote: »

I used to have a standard cut off of €42000 but now it is €33000.

Looks as though you're now being assessed as a single person rather than as a married couple.

Summer8181 wrote: »

My tax credits used to be 4600 now it is 8000. Am I better or worse off. Please explain

Standard rate cut off of €42,000 and a tax credit of €4,600 meant that previously you could earn up to €23,000 before having to pay any PAYE.

You'd have been liable for PAYE at 20% on your income between €23,000 and €42,000.

Standard rate cut off of €33,000 and a tax credit of €8,000 means that you can now earn up to €36,500 before having to pay any PAYE.

But every euro that you earn after €36,500 will be taxed at 40%.

Tell me approximately what you expect your gross annual salary to be this year and I'll calculate the difference for you!

Summer8181

Squatter wrote: »

Looks as though you're now being assessed as a single person rather than as a married couple.



Standard rate cut off of €42,000 and a tax credit of €4,600 meant that previously you could earn up to €23,000 before having to pay any PAYE.

You'd have been liable for PAYE at 20% on your income between €23,000 and €42,000.

Standard rate cut off of €33,000 and a tax credit of €8,000 means that you can now earn up to €36,500 before having to pay any PAYE.

But every euro that you earn after €36,500 will be taxed at 40%.

Tell me approximately what you expect your gross annual salary to be this year and I'll calculate the difference for you!

Thank you so much
I earn 49k at the moment but hope to get a pay rise to 55k later this year.

Squatter

Summer8181 wrote: »

I earn 49k at the moment but hope to get a pay rise to 55k later this year.

OLD: €49,000 with Standard rate cut off of €42,000 and tax credit of €4,600:-

€42,000 @ 20% = €8,400
€7,000 @ 40% = €2,800

Total PAYE due = €11, 200 less your tax credit of €4,600 means net tax payable is €6,600


NEW: €49,000 with Standard rate cut off of €33,000 and a tax credit of €8,000:-

€33,000 @ 20% = €6,600
€16,000 @ 40% = €6,400
Total PAYE due = €13,000 less your tax credit of €8,000 means net tax payable is €5,000


********************************************************************************************

You hope to get a salary increase up to €55,000 later this year, let's say that you get it on 1 July, meaning that your total income for the year will be €52,000:-

OLD: €52,000 with Standard rate cut off of €42,000 and tax credit of €4,600:-

€42,000 @ 20% = €8,400
€10,000 @ 40% = €4,000

Total PAYE due = €12,400 less your tax credit of €4,600 means net tax payable is €7,800


NEW: €52,000 with Standard rate cut off of €33,000 and a tax credit of €8,000

€33,000 @ 20% = €6,600
€19,000 @ 40% = €7,600

Total PAYE due = €14,200 less your tax credit of €8,000 means net tax payable is €6,200


So you can see that you're better off under the new arrangement at both salary levels!

Summer8181

Squatter wrote: »

OLD: €49,000 with Standard rate cut off of €42,000 and tax credit of €4,600:-

€42,000 @ 20% = €8,400
€7,000 @ 40% = €2,800

Total PAYE due = €11, 200 less your tax credit of €4,600 means net tax payable is €6,600


NEW: €49,000 with Standard rate cut off of €33,000 and a tax credit of €8,000:-

€33,000 @ 20% = €6,600
€16,000 @ 40% = €6,400
Total PAYE due = €13,000 less your tax credit of €8,000 means net tax payable is €5,000


********************************************************************************************

You hope to get a salary increase up to €55,000 later this year, let's say that you get it on 1 July, meaning that your total income for the year will be €52,000:-

OLD: €52,000 with Standard rate cut off of €42,000 and tax credit of €4,600:-

€42,000 @ 20% = €8,400
€10,000 @ 40% = €4,000

Total PAYE due = €12,400 less your tax credit of €4,600 means net tax payable is €7,800


NEW: €52,000 with Standard rate cut off of €33,000 and a tax credit of €8,000

€33,000 @ 20% = €6,600
€19,000 @ 40% = €7,600

Total PAYE due = €14,200 less your tax credit of €8,000 means net tax payable is €6,200


So you can see that you're better off under the new arrangement at both salary levels!

Excellent answer with clear and comprehensive example

Summer8181

Summer8181 wrote: »

Excellent answer with clear and comprehensive example

I take it that my private pension contributions will be deducted first (Not taxed) and then paye on the balance

Squatter

Summer8181 wrote: »

I take it that my private pension contributions will be deducted first (Not taxed) and then paye on the balance

Ideally that's how it should happen. But it's probably best to ask your payroll section, or check yourself how the PAYE deduction was calculated on your payslip.

Summer8181

Squatter wrote: »

Ideally that's how it should happen. But it's probably best to ask your payroll section, or check yourself how the PAYE deduction was calculated on your payslip.

That is currently how it happens. I can see that from my p60. Hopefully that trends continues.

mrsoft

I would like to piggy back on here if I may.

I have a child who is missing a limb. I have been told that they do not qualify for this tax credit. Seems a bit strange as they would be considered physically disabled.

I presume what I am being told is correct. Can anyone confirm this?

relax carry on

mrsoft wrote: »

I would like to piggy back on here if I may.

I have a child who is missing a limb. I have been told that they do not qualify for this tax credit. Seems a bit strange as they would be considered physically disabled.

I presume what I am being told is correct. Can anyone confirm this?

Criteria here.

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/incapacitated-child-credit/how-do-you-qualify-for-incapacitated-child-credit.aspx

Jonathan222

Hi all, hope I'm posting to the correct thread but...

We have been advised that our daughter can avail of the Incapacitated child tax credit and I'm trying to back date it for a couple of years using the form 12 online in 'MyAccount' on the revenue website. Having a rental property I have completed a form 11 for a number of years and when I try to fill out the form 12 form I get the message "We cannot process your request as you were registered for Income tax during 20xx".

Any suggestions as to what we have to do to backdate and claim would be greatly appreciated.

relax carry on

Jonathan222 wrote: »

Hi all, hope I'm posting to the correct thread but...

We have been advised that our daughter can avail of the Incapacitated child tax credit and I'm trying to back date it for a couple of years using the form 12 online in 'MyAccount' on the revenue website. Having a rental property I have completed a form 11 for a number of years and when I try to fill out the form 12 form I get the message "We cannot process your request as you were registered for Income tax during 20xx".

Any suggestions as to what we have to do to backdate and claim would be greatly appreciated.

You will either have to submit the retrospective claim manually or amend you income tax returns for those years to claim it.

Reputable Rog

Jonathan222 wrote: »

Hi all, hope I'm posting to the correct thread but...

We have been advised that our daughter can avail of the Incapacitated child tax credit and I'm trying to back date it for a couple of years using the form 12 online in 'MyAccount' on the revenue website. Having a rental property I have completed a form 11 for a number of years and when I try to fill out the form 12 form I get the message "We cannot process your request as you were registered for Income tax during 20xx".

Any suggestions as to what we have to do to backdate and claim would be greatly appreciated.

If your application is successful it will automatically be backdated 4 years by Revenue, Its not as if the condition suddenly commenced yesterday.

Jonathan222

relax carry on wrote: »

You will either have to submit the retrospective claim manually or amend you income tax returns for those years to claim it.

The thought of having to amend is terrifying, but thanks .

I'm guessing if we sent one in manually, the revenue would probably return it saying you must amend form 11 and resubmit.

Jonathan222

Reputable Rog wrote: »

If your application is successful it will automatically be backdated 4 years by Revenue, Its not as if the condition suddenly commenced yesterday.

I think it's only backdated to the date of diagnosis by the doctor/consultant , which, yes, if it was 4 yrs ago would be backdated those yrs.

Reputable Rog

Jonathan222 wrote: »

I think it's only backdated to the date of diagnosis by the doctor/consultant , which, yes, if it was 4 yrs ago would be backdated those yrs.

No, the date of diagnosis is just a confirmation that in the opinion of the doctor/consultant that on that date they were confident the condition was present.
The 4 years backdated is the maximum amount of backdating allowed for all Revenue refunds,

Bobby1984

Summer8181 wrote: »

I used to have a standard cut off of €42000 but now it is €33000. My tax credits used to be 4600 now it is 8000. Am I better or worse off. Please explain

You should look into why the tax credits and SRCOP have changed. Make sure that they are correct and see if you were entitled to higher tax credits in previous years. Also see what effect it has on your spouse. Its great that you have a higher net income now but is it because your spouse is paying much higher tax as you have all the tax credits.

Summer8181

Squatter wrote: »

Looks as though you're now being assessed as a single person rather than as a married couple.



Standard rate cut off of €42,000 and a tax credit of €4,600 meant that previously you could earn up to €23,000 before having to pay any PAYE.

You'd have been liable for PAYE at 20% on your income between €23,000 and €42,000.

Standard rate cut off of €33,000 and a tax credit of €8,000 means that you can now earn up to €36,500 before having to pay any PAYE.

But every euro that you earn after €36,500 will be taxed at 40%.

Tell me approximately what you expect your gross annual salary to be this year and I'll calculate the difference for you!

Thanks Bobby. Unfortunately, my wife took ill and is on invalidity pension. I have to pay tax on that and that is the reason my credits are lower.

Jakeren7

Hi
I know their has been no posts in this in awhile but here goes. My son has recently been diagnosed with autism he is three and a half. in the end we went private to have him assessed as the waiting list is to long. I was told I’m entitled to this credit by the phychologist who assessed him and she gave me letter to send off with forms. My doctor filled in his part and the question - is it present since birth he said NO and put the date of his diagnosis as 30th March 2018. Have I any hope of getting back money, I sent of all reports I had from enable Ireland and the HSE going back to 2016. It’s costing 700 a month for private OT and speech therapy and this money would really help. How long will I be waiting to hear any advice would be greatly appreciated.
Thanks

Reputable Rog

Jakeren7 wrote: »

Hi
I know their has been no posts in this in awhile but here goes. My son has recently been diagnosed with autism he is three and a half. in the end we went private to have him assessed as the waiting list is to long. I was told I’m entitled to this credit by the phychologist who assessed him and she gave me letter to send off with forms. My doctor filled in his part and the question - is it present since birth he said NO and put the date of his diagnosis as 30th March 2018. Have I any hope of getting back money, I sent of all reports I had from enable Ireland and the HSE going back to 2016. It’s costing 700 a month for private OT and speech therapy and this money would really help. How long will I be waiting to hear any advice would be greatly appreciated.
Thanks

Why did the DR say no? That's ridiculous.

Jakeren7

Reputable Rog wrote: »

Why did the DR say no? That's ridiculous.

His Point was it’s only been diagnosed now so he can’t say if it’s present since birth but like he just didn’t develop it the day he was assessed. So annoying

Reputable Rog

Jakeren7 wrote: »

His Point was it’s only been diagnosed now so he can’t say if it’s present since birth but like he just didn’t develop it the day he was assessed. So annoying

That's appalling, complain him to the Medical Council.

Jakeren7

Reputable Rog wrote: »

That's appalling, complain him to the Medical Council.

Could I appeal if revenue say no. I only sent it off a week ago so haven’t heard anything yet

Reputable Rog

Jakeren7 wrote: »

Could I appeal if revenue say no. I only sent it off a week ago so haven’t heard anything yet

I would reckon so, they are a very reasonable organisation at the best of times. It might be worthwhile getting onto the Doctor again and getting a letter, autism doesn't occur overnight.
If successful it will increase your chance of getting DCA.