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.
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:
- 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.
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.
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.