Carer for incapacitated person – Tax Relief
Carer for incapacitated person – tax relief
You may claim an allowance for a carer employed to care for an incapacitated relative.
The allowance is given for the lower of
a) amount incurred in employing the carer
b) or €75,000
For example
You employ a carer for your spouse who suffers from Dementia
Your income for the tax year is €80,000
You pay the carer €20,000 per year
You are entitled to a deduction of €20,000 in computing your taxable income
Therefore, you are taxed on €60,000
Revenue also gives relief on the cost of care service providers or agencies, such as:
- charitable or voluntary organisations
- commercial organisations that provide home care services.
Restrictions
You cannot claim relief for employing a carer if they are employed as a housekeeper only.
You cannot claim relief for funding you receive for employing a carer from:
- the Health Service Executive (HSE)
- a local authority.
If you claim relief for employing a carer you cannot claim the:
Subject to qualifying conditions and criteria
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie
