Understanding Tax Credits – Incapacitated Child Tax Credit

An Incapacitated Child Tax Credit of €3,300 is available in respect of each incapacitated child who is living with the individual claiming the credit, at any time during the tax year.

An incapacitated child is:

  • Any child under 18 years of age who is permanently incapacitated by reason of mental or physical infirmity, or
  • If over 18 years of age, is in receipt of full time education, or became permanently incapacitated by reason of mental or physical infirmity before reaching the age of 21 or before finishing full time education, whichever is the later.

Where two or more individuals maintain an incapacitated child, the tax credit may be apportioned between them, based on the maintenance costs incurred by each.  The incapacitated child tax credit cannot be claimed in addition to the dependent relative tax credit for the same individual.

The incapacity of the child may be such that it permanently prevents the child in the long term from being able to maintain themselves independently.  If the incapacity can be corrected or relieved by the use of any treatment, device, medication or therapy the child will not be regarded as permanently incapacitated in so far as this relief applies.  The following are just some examples of disabilities which are regarded as permanently incapacitating:

  • Cystic Fibrosis
  • Spina Bifida
  • Blindness
  • Deafness
  • Downs Syndrome
  • Spastic Paralysis
  • Acute Autism.