Understanding Tax Credits – Widowed Person or Surviving Civil Partner Tax Credit

    A widowed person or surviving civil partner is treated the same as a Single Person by Revenue for the basic personal tax credit each subsequent year after the bereavement with special rules applying in the tax year in which the spouse or civil partner dies.  A widowed person or surviving civil partner is entitled to claim the single/widowed person or surviving civil partner tax credit of €1,650 in the current tax year.

    If there are no dependent children, the individual is also entitled to claim an additional tax credit of €540 in the current year.   Therefore a person who has been widowed or is the survivor of a civil partnership with no dependent children can claim the PAYE Tax  Credit of €1,650, the Widowed Person or Surviving Civil Partner Tax Credit of €1,650 and an additional Tax Credit of €540 , a total of €3,840.

    Where there are dependent children, the individual can claim the single/widowed persons or Surviving Civil Partner Tax Credit of €1,650, the PAYE Tax Credit of €1,650, the Single Parent Tax Credit and an additional tax credit which reduces on a sliding scale over a period of 5 years commencing in the year after the year of bereavement from €3,600 in the first year, to €1,800 in the fifth year.  The rules relating to a “Qualifying Child” as apply to the One Parent Family also apply for this Tax Credit.

    The Year of Bereavement tax credit of €3,300 applies to a widowed person or a surviving civil partner for the income tax year in which the spouse or civil partner’s death occurs provided the spouse who dies was the “assessable spouse” or “nominated civil partner”.  This tax credit is available to the surviving spouse or civil partner against the tax liability arising in the post-death period, i.e. the period from the date of death to the end of the income tax year.  Where the assessable spouse or nominated civil partner is the surviving spouse or civil partner, they will continue to get the married couple or civil partnership tax credit and Standard Rate Cut Off Point for the entire tax year.  They will be taxable on their own income for the full tax year in which their spouse of civil partner dies plus their late spouse or civil partner’s income from the beginning of the tax year to the date of the death.

     

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