Nursing home payment tax relief

lauraq

My mother has recently moved to a nursing home. She is cash rich and has no assets therefore is only getting 70 euro a week from fair deal. Can we claim tax relief if the nursing home fees are paid from her account. She ihasn't done a tax return in years as her income is just pensions and interest on savings etc.

nompere

https://www.boards.ie/discussion/2058427068/nursing-home-payment-tax-relief

Yes you can.

But you will only reduce her tax to nil - you won't get a refund of the tax credit.

Say your mother's income is €35,000. Ignoring the small amounts of tax paid on savings income, her tax bill is going to be €7,000 less credits of €4,245 (personal credit, employee credit and age credit. So, that's net tax of €2,755. A credit for (maybe) €60,000 of nursing home expenses, which could be worth €24,000 to someone else, will only reduce the €2,755 to nil.

lauraq

Thanks. That makes perfect sense