Employing a person to take care of an incapacitated relative

Employing a person to take care of an incapacitated relative ?

You may claim tax relief in respect of the cost of employing a person (including a person whose services are provided by or through an agency) to take care of either –

• a family member (including yourself or your spouse) who is totally incapacitated by reason of physical or mental infirmity, or
• a relative who is totally incapacitated by reason of physical or mental infirmity.

Relief is not due if the carer is employed as a housekeeper only, or if the Incapacitated Child tax credit or Dependent Relative tax credit has been given in respect of the employed carer.

Tax relief may be claimed on the lower of the following amounts:

• the actual cost incurred in employing the carer, or
• €75,000 at the claimant’s highest rate of tax (€50,000 for years up to and including 2014)

Relief can be claimed in the first year in which the claimant proves that either he or she or a relative was totally incapacitated by physical or mental infirmity

Any queries on same give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie