Sir, – While Catherine Walsh of the Stay at Home Parents Association correctly states (February 27th) that single-income families often incur a higher tax burden compared to dual-income households, I can offer some consolation. At a common salary level of €42,800, the "gap" between the take home of a dual-income family over a one-income family with a stay at home parent should be considerably less than in the example offered.
In estimating a total tax liability of €6,752, it would appear that the home carer tax credit of €1,100 has not been taken into account. This credit would be available to a one-income family with a stay at home parent. The omission is perhaps not surprising given how misunderstood this tax credit is. Our surveys suggest that as many as 60 per cent of qualifying households do not claim this credit.
The credit is available to single income, jointly assessed couples with a dependent. Many people misinterpret “dependent” to mean only an elderly or incapacitated relative, and incorrectly assume their own child or children) do not qualify as “dependents”. They do. Members of the Stay at Home Parents Association would therefore appear to be the prime candidates for this credit, which Ms Walsh may wish to ensure her members are aware of. – Yours, etc,
BARRY FLANAGAN,
Taxback.com,
14 St Stephen’s Green,
Dublin 2.