Check the family-income condition
The statutory ceilings are €100,000 for families with up to two children, €150,000 for three or four and €200,000 for five or more. The single-parent family uses the corresponding family ceiling. Apply the law’s definition of family income rather than using one payslip or income after deductions.
The number of children for the income-ceiling test and eligibility of dependent children for the deduction must both be checked under the statutory definitions. Assess the position at 31 December and retain the evidence supporting it.
Document dependency and custody
Keep identity and relationship documents and any relevant education evidence. The law includes qualifying student children up to age 24 within its dependent-child provision. Do not assume that every adult child living at home qualifies regardless of circumstances.
For doubled amounts, establish the statutory single-parent or full-custody position. Informal descriptions such as “I pay most of the bills” do not replace the relevant legal and factual evidence.
Calculate the deduction, then the tax effect
For two eligible children, the ordinary deduction is €1,000 + €1,250 = €2,250 for each eligible parent. For three it is €3,750. If the relevant doubled rule applies, the corresponding two-child amount is €4,500.
At an assumed 30% marginal rate across the full deduction, €2,250 reduces tax by €675. If the deduction crosses tax bands or the parent has no taxable income, the effect differs. It is not a €2,250 payment from the state.
Meet filing and payroll requirements
Section 14B also conditions relief on timely relevant returns and the required spouses’ or civil partners’ consent to disclosure of tax information between them. Preserve the claim and coordinate the family information used by each taxpayer.
Employees should use the TD59 process for payroll treatment and reconcile the annual return. Check the separate housing deduction without combining its expense evidence with child eligibility.