Incapacitated child credit and Tax Individualisation

B

Boru

Guest
I have a son who is incapacitated (wheelchair bound) with a rare genetic disorder. We are currently claiming the Incapacitated Child credit and a Home Carers Credit also I believe. However, my wife gave up work to look after our son. This means that our income is now assessed differentlt i.e. before we used to get a joint 53k standard rate cutoff I believe and now it is 19k less. Should this be correct? It seems unfair that we are financially penalised? Any thoughts?
 
Where does the SRCOP (standard rate cut off point) of €53K come from? Doesn't seem to tally with the 2006 SRCOP details [broken link removed].

For 2006 with the two incomes I reckon that your SRCOP would have been €41K + the increment of €23K = €64K. In 2007 with just your income it would seem to be €43K or €21K less. Am I wrong?

If your query is about individualisation per se then this thread (not updated for 2007 SRCOP/credits) might be of interest:

Income Tax Summary 2006 and how individualisation works

To compre your before and after net income and deductions etc. you might like to try [broken link removed].

I don't really understand the relevance of the incapacitated child credit to your original post? You seem to express some doubt about the credits that you are claiming - your statement of tax credits should clarify this situation and if you are not claiming something to which you are entitled then do so ASAP. You can do this online nowadays. The taxation key topics thread might also be worth a look.
 
Thanks. I guess my question is whether we can still claim the higher SRCP rather than the Credits as it would be more benefitial for us to do so? Apologies for getting my numbers wrong!!!
 
You can only claim the married couple single income SRCOP of €43K. You should also claim any credits to which you are entitled. At least the incapacitate child credit was double in Budget 2007 to €3K.
 
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