Fair Deal Advice Blog

Taxation Relief on Nursing Home Fees

When a person needs to enter a Nursing Home, regardless of whether they are in the Fair Deal/Nursing Home Support Scheme or paying for their care privately, the resident and or their spouse if married can claim tax relief on their contribution towards their care as long as they and or their partner are liable for income tax.

Tax relief is limited to the amount of tax payable. If the applicant has taken out the Nursing Home loan, the tax relief will only be available on the income, cash asset contributions and any other assets contribution that has not availed of the nursing home loan.

If children of the resident pay towards their parents care they can also claim tax relief on their contribution to care, limited to the amount of tax that is payable. If paying tax, please ensure that you have copies of receipts and invoices for the contribution you pay. Taxation relief can be claimed by an annual tax return or alternatively the resident, spouse or children can ask for tax relief to be paid fortnightly/monthly so that tax relief is available in real time.

If you require additional advice on the Fair Deal/Nursing Home Support scheme and how to minimise the net contribution to care, contact Tom Murray @ 086 601 5042 or email advice@fairdealadvice.ie or alternatively visit www.fairdealadvice.ie.