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:

1. charitable or voluntary organisations
2. 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:

1. the Health Service Executive (HSE)
2. a local authority.

If you claim relief for employing a carer you cannot claim the:

• Incapacitated Child Tax Credit
• Dependent Relative Tax Credit.

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