If you employ a carer for yourself or on behalf of a family member, you can claim the tax relief on the cost of that care. A family member is a spouse, child or a relative, including a relation by marriage.
You cannot claim tax relief for employing a carer if the carer only carries out housekeeper duties or if a Dependent Relative Tax Credit or an Incapacitated Child Tax Credit has already been granted.
Tax allowances and reliefs reduce the amount of tax that you have to pay. The amount, by which a tax allowance/relief will reduce your tax, depends on your rate of tax.
The maximum amount of relief for employing a carer is €50,000 in 2012. You must claim the relief each year. You can get tax relief on the cost of employing a carer, less any amount recovered from the Health Service Executive (HSE).
If two or more of you pay for the care, the relief is divided between you in proportion to the amount each paid.
If you are a PAYE taxpayer, you can apply for tax relief for employing a carer on form HK1 or telephone Revenue Lo-call Service. Your certificate of tax credits will be increased to include the relief due. This means that you will pay less tax each week from your salary.
If you pay tax by self-assessment the claim for tax relief for employing a carer should also be sent on form HK 1 and attached to your annual tax return. For further information please visit www.revenue.ie or www.citizensinformation.ie