The Minister for Social Protection has confirmed that information shared from his Department to Revenue relating to the Carer's Allowance will be forward looking.
"We are sharing information with Revenue on a forward-looking basis," said Dara Calleary.
It comes after 34,600 carers were contacted about unexpected tax bills from Revenue, a situation which has occurred in part due to its sharing of data with the Department from 1 January.
While the Carer's Allowance has always been subject to tax, a significant number of carers were unaware they had to declare it, meaning some people now owe money to the State.
Revenue has received phone calls from around 1,900 concerned carers, through a dedicated phone line, since letters were sent out in mid-November ahead of the change.
Mr Calleary said less than 10% of the 104,000 people who receive Carer's Allowance or benefit will have any tax liability.
"The majority of that will be less than €1,000," said the Minister. "We don't want people to be concerned," he said, adding: "we will work with them."
The Minister added that Carer's Allowance has always been taxable and that Revenue will treat this issue with "empathy".
Revenue said in a statement that income from all sources is subject to Income Tax.
"Not all carers will have an Income Tax liability," it said.
"Revenue is not carrying out a review of prior years in respect of Carer’s Allowance or Carer’s Benefit as a result of this change.
"The focus of the new process is on the timely collection of any tax on a forward-looking basis."
Revenue said real-time sharing "allows any Income Tax due to be collected during the year, in line with other taxable social welfare payments, and reduces the risk of an end-of-year tax liability".
Mr Calleary said: "We are very committed to carers."
"As a Government, we have made a number of strong commitments in relation to carers," he said.
Mr Calleary said €1.2 billion will be invested in Carer's Allowance and Carer's Benefit in 2026, adding that the means test for carers will be abolished during the lifetime of this Government.
Earlier, Taoiseach Micheál Martin insisted that "nothing has changed" in how carers are taxed.
He insisted that the "Government will do everything we can" to help carers.
Opposition parties have heavily criticised revelations that Revenue had contacted recipients of the Carer's Allowance about tax bills.
Sinn Féin leader Mary Lou McDonald said that "carers are not tax dodgers" but people "who save the State a fortune".
"Thousands" of carers "are in shock" and "some are very, very distressed" after receiving letters from Revenue "out of the blue" saying they may owe tax, she told the Dáil.
She said that this news comes as it emerged that ten Government ministers who had been overpaid "had failed to make arrangements to pay back money that they owed".
Social Democrats TD and justice spokesperson Gary Gannon said the life of a carer is already "full of anxiety".
Meanwhile, Independent Ireland TD Michael Collins said people have been left "terrified" by unexpected tax bills from Revenue.
"They need to be given amnesty here," he said.
