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Nursing Home Tax Relief

March 23, 2020

Tax Relief on Nursing Home Fees

You may claim tax relief on any nursing home fees paid by you. The nursing home must provide 24-hour on-site nursing care in order for you to be eligible for tax relief. The nursing home fees can relate to anyone, as long as the fees are paid by you.

You can claim tax relief for nursing home fees under the general scheme for tax relief on medical expenses. Tax relief on nursing home fees applies at the highest rate of income tax that you pay. So if you are paying tax at the 40% rate, you will be eligible for tax relief of 40% on whatever fees you pay.

 

Nursing Home Fees and the Fair Deal Scheme

Where you are paying for a nursing home under the Nursing Homes Support (Fair Deal) Scheme, you can claim tax relief on the amount you pay yourself.

The HSE pay the balance of the costs of the nursing home. You cannot claim tax relief on this amount.

Under the Ancillary State Support Scheme (Fair Deal Loan Scheme) you may wish to defer your healthcare costs. You can do this if you have Irish land or property assets. The HSE provide you with a loan, using your assets as security.

The loan is paid directly by the HSE to the nursing home. You cannot claim tax relief on the amount paid by the HSE to the nursing home.

When the loan is repaid (when the asset used as security is sold or upon death), you or your estate can claim tax relief on the amount repaid.

You can also claim tax relief for the cost of expenses of additional nursing care. You or your relative may:

  • suffer from a serious illness and require home nursing. This is where you employ a qualified nurse, on the advice of a medical practitioner, to provide nursing care at home
  • be in a nursing home and require more nursing care than is normally required

 

How do I claim tax relief on Nursing Home fees?

To claim tax relief on Nursing Home fees, just fill in our Full Review Form. This form will provide us with the details necessary to claim tax relief on Nursing Home fees, along with any additional tax credits you might be due for the last 4 years.

Alternatively, you can fill out our Quick Review Form, and contact us upon completion informing us of the tax credit(s) you are looking to claim.

If you are not entitled to tax relief on Nursing Home fees, but would still like us to review your taxes, just complete our 50-second Quick Review Form.