News at One Carers worried about an unexpected tax bill
Jan 20, 2026
Catherine Cox, the Head of Communications and Carer Engagement at Family Carers Ireland, dives into the recent tax implications for family carers receiving allowances. She clarifies that while these payments have always been taxable, most carers won't face a tax bill due to certain income thresholds. Catherine discusses the automatic tax reporting system starting in January, which will ease burdens on carers. She also advocates for tax exemption and a means test removal, addressing anxieties and providing support resources for those concerned.
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Carers Payments Are Taxable Going Forward
- Carers allowance and carers benefit have always been taxable but were previously self-declared by carers.
- From 1 January this year Revenue will automatically handle tax treatment going forward and will not look back.
Majority Of Carers Likely Unaffected Now
- Most carers (around 90%) are unlikely to have a tax liability arising from the carers allowance.
- Revenue says the process is forward-looking and the Department of Social Protection will not be sharing past figures.
Carers Group Says Taxation Is Unfair
- Family Carers Ireland has long lobbied for carers payments to be tax-exempt and for the abolition of the means test.
- They argue carers are treated as wage-earners without wage protections or minimum pay, so taxation is unfair without employment benefits.