Tax Tips

Employing A Carer? Claim Tax Relief

Taking care of an incapacitated or disabled loved one is a reality of life for many families. Employing a carer can be an appealing solution, and an excellent alternative to a nursing home — but it can also have significant financial implications on families.

When given the option, most elderly people prefer to remain in their own homes rather than enter a nursing home. Unfortunately, in Ireland, the cost of home care can exceed €450 per week or €23,920 per year! This is where tax relief on Employing a Carer credit is invaluable.

The tax relief on employing a carer in your home helps to ease some of the financial impact on families in this position. If you or your family employ an at-home caregiver, you may very well qualify for this tax rebate.

CONTENTS
Qualifying For the Employing a Carer Credit
Exceptions
How Much Reimbursement Should You Expect?
Applying for Your Tax Relief

Qualifying For the Employing a Carer Credit

What is an at-home care scenario? Like any other tax rebate, there are certain conditions each applicant must meet before qualifying for the tax credit.

The nature of your household member’s incapacity must be either:

A physical condition
A mental infirmity
An ongoing disability

The definition of a household member is a direct family member:

Parent
Children
Siblings
Spouse/Civil Partner

Please note that tax credit eligibility extends to your spouse or civil partner’s direct family as well, such as a parent. Additionally, anyone for whom you’ve served as a legal guardian is covered under the credit.

The care itself can encompass a wide range of activities, most of which include crucial activities of daily living such as bathing, dressing, feeding, and ambulation. Also note that, under this program, tax relief exists for in-home nursing care, as well as care administered by volunteer agencies.

Exceptions

When determining whether or not you qualify for the home care credit or not, there are some important restrictions that you need to be aware of.

The home carer that you employ must be responsible for helping your relative maintain crucial activities of daily living. They cannot simply be a housekeeper or senior companion. In other words, the dependant must be incapacitated and unable to care for themselves in any meaningful way.
Services provided by either the HSE or a local authority are not eligible for reimbursement.
You cannot claim both the Employing a Home Carer Tax Credit and a Dependent Relative Credit simultaneously.

How Much Reimbursement Should You Expect?

There are two benchmarks worth noting when figuring out how much you’re Employing a Home Carer Tax Credit will be. Remember, because the rebate is based on your taxable income, the credit will essentially lower that income.

You can claim the total amount that in-home care costs your family, up to €75,000. Alternatively, if your expenses exceeded the €75,000 cap, then you can only claim that maximum amount.

Applying for Your Tax Relief

If you employ a carer for yourself or a disabled family member, you are entitled to a tax rebate that covers a portion of the costs. As with any tax rebate, there is an application process involving government forms and paperwork. Irish Tax Rebates can help you cut to the chase and claim your tax credit quickly, without the normal hassle involved. Please contact us today for more information.

New Customers: Apply here.

Existing Customers: Apply For Additional Rebate

Claim your tax back

Terms and Conditions

1. Authorisation to act as agent

I, the undersigned, declare to the Revenue Commissioners of Ireland, that I authorise

Irish Tax Rebates (TAIN 66436K)
1 Leinster Street
Athy
Co Kildare

to act as my agent in dealing with all aspects of the filing of my Irish income tax return, including the submission of refund or credit claims, allowances or reliefs.

I confirm that all documentary evidence of entitlement to credits/reliefs claimed and taxable income sources, will be held for a period of 6 years, beginning at the end of the year of assessment to which the Return of Income and/or claim relates, by myself.

I confirm that this authorisation will remain in force until Revenue is formally notified of its cessation by either myself or Irish Tax Rebates, or for a maximum period of 4 years.

2. Authorisation for Agent to receive refunds on behalf of client

I authorise the transfer of any refund or repayment of PAYE/Income Levy/Universal Social Charge due to me by the Revenue Commissioners by electronic funds transfer to the following bank account which is held by Irish Tax Rebates:

BIC Code: AIBKIE2D
IBAN Number: IE55AIBK93336808365254
Name of Account Holder: Irish Tax Rebates

I understand that any refund made by the Revenue Commissioners to my agent, Irish Tax Rebates, on my behalf is refunded in a similar manner as if same were being refunded directly to me and that once the refund is transferred into the bank account nominated by me I have no further call upon the Revenue Commissioners in respect of same. I understand that Irish Tax Rebates is acting as my agent and is solely responsible to me in respect of any refund received by them on my behalf. I further understand that my agent Irish Tax Rebates is an independent entity and that the Revenue Commissioners make no endorsement of my agent or any such agency and cannot accept any responsibility whatsoever for problems encountered by me in dealing with them. I understand and agree that Irish Tax Rebates will input its own bank account details on the Revenue record for the duration of this mandate and will remove these details on the cessation of the mandate. I confirm that I am aware of, and agree to, the payment of the fees charged by Irish Tax Rebates in respect of the services carried out on my behalf and that this fee will be deducted from any amount refunded by Revenue and that the balance of this amount will be paid to me.

3. Terms and Conditions of Authorisation

I understand that Tax law provides for both civil penalties and criminal sanctions for the failure to make a return, the making of a false return, facilitating the making of a false return, or claiming tax credits, allowances or reliefs which are not due. I confirm that I will provide the necessary documentation to Irish Tax Rebates to support any refund, credit claims or claims for allowances and reliefs made to Revenue on my behalf of Irish Tax Rebates. I confirm that I will provide details of all my sources of income to Irish Tax Rebates.

I understand that I am required to retain all documentation relating to any refund or credit or allowance or relief claimed by the agent on my behalf for a period of 6 years beginning at the end of the year of assessment to which the Return of Income and / or claim relates, and that Irish Tax Rebates will be required to produce same to Revenue upon request.

More Tax Tips