As the costs of nursing home care and additional nursing care continue to rise, it’s important to know what financial support is available. One area where you can ease the burden is through tax relief. Whether you or a loved one are in a nursing home or require extra care due to a serious illness, there are several ways to claim tax relief on the expenses incurred. This guide outlines the key points you need to be aware of when applying for tax relief on these costs.

Nursing Home Expenses:

If you are paying for nursing home care, you may be able to claim Income Tax relief on the expenses. This relief is available as a deduction from your total income, provided the nursing home offers 24-hour on-site nursing care. This means that the portion of your income which is taxable at your highest rate is reduced. The relief can be claimed at either 40% or 20%, depending on the rate of tax you pay.

Nursing Homes Support (Fair Deal) Scheme:

The HSE can help with the cost of your nursing home care through the Nursing Homes Support Scheme (Fair Deal). However, tax relief cannot be claimed on the amount covered by the HSE. You can only claim tax relief on the portion of the cost that you pay yourself.

Ancillary State Support Scheme (Fair Deal Loan Scheme)

If you have Irish property or land, you may be eligible to defer your healthcare costs under the Ancillary State Support Scheme, also known as the Fair Deal Loan Scheme. Under this scheme, the HSE provides a loan, secured against your assets, and pays the nursing home directly. You cannot claim tax relief on the loan amount paid by the HSE, but once the loan is repaid, either after the sale of the asset or upon your death, you or your estate can claim tax relief on the amount repaid.

Receiving Relief During the Tax Year:

You can also claim tax relief for nursing home expenses in real time during the tax year.

Additional Nursing Care Expenses:

Relief can also be claimed for the cost of additional nursing care. You, or a relative, may be eligible for relief if you:

• Suffer from a serious illness and require home nursing, which involves employing a qualified nurse at home, based on medical advice.
• They are in a nursing home and require more nursing care than is typically provided.

To claim this relief, you must provide a medical certificate that:

• Confirms that constant nursing care at home or additional nursing care in a nursing home is necessary.
• Includes the name and address of the patient.
• Outlines the nature of the illness and covers the entire period for which nursing care is being claimed.

Additionally, you must supply the nurse’s full name, address, and proof of their qualifications. You must keep a detailed record of payments made to the nurse, along with all receipts.