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Clarity on Nursing Home Tax Relief ?

  • 27-10-2012 1:40pm
    #1
    what would you do
    Registered Users, Registered Users 2 Posts: 11 ✭


    Hi all,

    I'm trying to get my head around how tax relief on nursing home fees actually works out ... my own accountant doesn't seem to be that clear on it and most of the info on-line seems contradictory. I'd very much appreciate if any of you in a similar situation could clear this up for me.

    I'll keep it as simple as I can.

    My parents gross income is approx 90,000 between them;

    €70,000 from a Rental Property.
    €20,000 Pensions.

    €75,000 Net approx after expenses.

    Out of this, €41,000 pays for the cost of my Dad's care (He is now resident full time in a nursing home).

    They are both aged over 70, married etc. Up to now, they have been paying tax at the standard rate - 20%.

    So how does tax relief work on the 41,000?

    Is it effectively 20% of the 41,000 = 8,200 - and therefore their tax bill is reduced by 8,200 via the Med1 form?

    Or is 41,000 deducted from the 75000 net income, and tax calculated on the balance - 34000?

    I doubt it's that simple! ???

    Any advice much appreciated.


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