If you are paying for home care services for a loved one you can claim tax relief at your higher rate of 40% income tax.
- Tax relief can be claimed by the bill payer at their marginal rate of tax (either 20% or 40%)
- You simply fill out a form called the HK1 ‘Claim for an Allowance for Employing a Carer’. This form is attached to the IT47 ‘Employed person taking care of an Incapacitated Individual’ form which is sent to the inspector of taxes in your local area.
- Then you can claim tax relief at the end of the year, or indeed monthly through your pay so you don’t have to wait until the end of the year
- If you are not working or paying tax, you can still receive this cash back through other members of your family up to a total of €50,000 at their marginal tax rate, for example your son or daughter’s pay. This is perfectly legal and you are entitled to this benefit.
How do I apply for tax relief?
To apply for tax relief please review the IT47 leaflet entitled, Employed Person Taking Care of an Incapacitated Person which you can download here, and then complete HK1 form which you can download here.
This form allows you to claim a tax allowance if you are caring for a relative or spouse who is deemed incapacitated due to physical or mental infirmity. A relative includes a relation by marriage and a person in respect of whom the claimant is or was the legal guardian.