Calculate your Tax Relief on Home Care
Home care may be more affordable than you think.
Depending on your needs, you may be comparing the cost of home care versus that of a long stay nursing home.
Remember that any member of your family may be able to avail of tax relief at the highest bracket, which may reduce your home care costs by as much as 40%.
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Claim Up To 40% Tax Relief
Tax Relief on Homecare
You or a family member can claim tax relief up to 40% against the cost of home care.
- The person or persons to whom the invoice is addressed and who pay the care bill can claim tax relief up to their highest tax bracket.
- Tax relief is applied pro-rata to the amounts paid by each individual, if more than one person pays for care.
- The annual limit for tax relief is 75,000 euros, per each incapacitated person, per annum.
- If you employ a carer directly, you should register as an employer and you will be responsible for your employee’s tax and social insurance (PAYE, Universal Social Charge and PRSI).
- You will also have other duties and obligations as an employer, for example regarding hours of work, contracts of employment, pay slips, holidays and the minimum wage.
Source: Citizens Advice
- Complete a HK1 form – Claim for Allowance for Employing a Carer and submit it to your local tax office. Submit this form during or after the year ends.
- This form is attached to the IT47 Employed Person Taking Care of an Incapacitated Individual
- Choose to claim your tax back monthly or at year end.
When considering the true cost of care, we strongly recommend you offset the highest tax bracket of the person(s) paying the care bill against our quotation, ie 20% – 40% reduction. Note that the person(s) paying the care bill does not have to be the recipient of care, but should be a family member.
- See what the Citizen’s Advice Centre says about calculating your income tax
- See what the Revenue Says about employing a carer. This is very helpful and also gives case studies with calculations so you can see how tax relief is applied to different family situations for home care.
- Please contact the Revenue with any queries about your tax situation. Your local tax office address can be found on your Tax Credit Certificate or on any correspondence you have received from Revenue.
- The information on this page is correct for the tax year 2019
- We cannot comment on individual’s tax situations or claims.We can only share publicly available tax information from credible sources such as www.revenue.ie or www.citizensadvice.ie.
- Please note that VAT is not applied to the home care sector.