Paying Maintenance for a Child

Mind Boggled · 27 Oct 2004

Would anyone know if it is possible to claim tax relief on child maintenance payments? My husband pays his ex-partner €80 a fortnight in support of his child. He has been doing this for the past few years. He has heard from a co-worker that it is possible to claim tax relief on this (ie. that his tax band will change from 42% to 20%). This figure of €80 was worked out eventually between themselves (in addition, we buy the child many other necessary things by way of maintenance, eg. clothes and school stuff), after lengthy and not-very-pleasant court sittings. He gives her cash every fortnight and doesn't have a record of his payments. Many thanks for any advice.

Guest · 27 Oct 2004

Are these OASIS links of any use?

Tax treatment of voluntary maintenance payments

Voluntary maintenance payments (i.e., payments that are not legally enforceable) are not taken into account when calculating either spouse's tax. This means that:

* The spouse who makes the payments is not entitled to a tax deduction for them
* The spouse who receives the payments is not taxed on them
* Both spouses are taxed on their own income as single people.

Where a spouse:

* Makes voluntary maintenance payments to the other spouse

and

* Is not entitled to a tax deduction for the payments because they were not made under a legally enforceable arrangement

and

* The payments are sufficient to either wholly or mainly maintain his/her spouse,

he/she will qualify for the married person's tax credit but only the single person's standard rate cut-off point is due. The other spouse can also claim the single person's tax credit against his/her own income (if any).

"Mainly Maintaining" means that the payer's maintenance payments exceed the recipient's income.

Capall · 27 Oct 2004

While tax relief may be available on maintenance payments to a spouse they are never available for payments for a child.
Which is reasonable as why should people who separate get tax relief for raising their own child when a married couple would not get relief for the same costs.

kbuckley123 · 9 Dec 2004

if you are not benefiting from the married tax allowance, ie.you are taxed as a single person with married persons costs and your costs are invariably considerably higher than those of co-habiting couples.these situations rarely arise out of choice..thats why..

extopia · 10 Dec 2004

>>we buy the child many other necessary things by way of maintenance, eg. clothes and school stuff)

Well, isn't that what parents do? If you're doing this out of generosity, fair play to you. It's of course your spouse's responsibility and not yours personally.

Don't let the child suffer. He or she is only really vulnerable party here from what I can gather from your post.

Mrfrags · 14 Dec 2004

The only thing your partner is entitled to is the tax credits for his child. Also remind your partner to keep a record of all expenses he has paid our towards the upkeep of the child as this can be used as evidence if his ex comes looking for more money!

kbuckley123 · 17 Dec 2004

reply

Can you explain the below?
The only thing your partner is entitled to is the tax credits for his child.

I have a young child who lives on the continent with his mother (not irish). I pay a substantial monthly maintenance as well as what I can when I am there or they are here on visits which is as often as possible given time and money constraints. I am trying to find out if I there was any relief available for this situation. We were never married and am currently under single persons tax allowance.

Paying Maintenance for a Child

Mind Boggled

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