Tax relief for home care

Tax relief for home care

Making quality home care more affordable

At Obsidian Homecare Services, we understand that funding home care can be a significant concern for families. Fortunately, in Ireland, you may be eligible for generous tax relief on the cost of home care services, making high-quality care more accessible and affordable.

With the right supports in place, you can claim up to 40% tax relief on home care expenses, significantly reducing your out-of-pocket costs while ensuring your loved one receives the professional care they need.

Who can claim tax relief on home care?

Tax relief is available to individuals paying for home care services under the Revenue Medical Expenses Relief Scheme. You can claim relief if you are:

  • The person receiving care

  • A spouse, civil partner, or relative paying for a family member’s care

  • A legal guardian paying for care on behalf of someone else

  • A representative paying for home care for a friend, neighbour, or another dependent person

How much tax relief can I get?

The maximum relief available is 40% of the total cost of home care, depending on your personal tax rate.

  • If you pay income tax at 40%, you can claim back 40% of your home care expenses.

  • If you pay income tax at 20%, you can claim back 20% of your home care expenses.

This can lead to significant savings, making home care a more affordable long-term solution.

Example of tax savings

Annual home care cost

€30,000

€50,000

€75,000

Tax relief (40%)

€12,000

€20,000

€30,000

Actual cost after relief

€18,000

€30,000

€45,000

What types of home care qualify for tax relief?

The following home care services qualify for tax relief under Irish Revenue guidelines:

  • Personal care assistance – Help with daily tasks such as bathing, dressing, and mobility

  • Nursing & medical support – Administration of medication, wound care, and clinical monitoring

  • Dementia & alzheimer’s care – Specialist home care for individuals with cognitive impairment

  • Palliative & end-of-life care – Comfort-focused care for individuals with serious or terminal illnesses

  • Respite & relief care – Short-term support for family caregivers

  • Complex care & disability support – Assistance for individuals with long-term conditions or disabilities

All care must be provided by a registered and tax-compliant home care provider to qualify for relief.

How to apply for tax relief

Claiming tax relief on home care is simple:

Step 1: Keep records of payments

Ensure you have invoices and proof of payment for all home care services received from Obsidian Homecare Services.

Step 4: Receive your refund

Once processed, Revenue will apply your tax relief, reducing your overall tax bill or providing a refund.

Step 2: Complete Form HK1

Fill out Revenue Form HK1 (Health Expenses – Home Nursing) or use the online system via Revenue’s MyAccount.

Step 3: Submit with your tax return

You can claim relief:

  • Online via MyAccount (for PAYE taxpayers)

  • Through your accountant (for self-employed individuals)

  • By filing a tax return using Form 12 or Form 11

Government support & additional funding

While tax relief significantly reduces home care costs, there are other financial supports available:

Home Support Services Scheme (HSE)

  • Provides subsidised or fully funded home care for those who qualify.

  • Available to older adults and individuals with disabilities.

  • Application through your local HSE office.

Carer’s Allowance & Carer’s Benefit

  • If you provide full-time care to a loved one, you may qualify for Carer’s Allowance or Carer’s Benefit, providing financial support.

Fair Deal Scheme (for Nursing Home Support)

  • While primarily for nursing home care, some Fair Deal participants may receive funding for home care instead.

Our team at Obsidian Homecare Services can guide you in exploring all available funding options.

Tax relief & financial supports for home care

In Ireland, several forms are available to claim tax reliefs and allowances related to caregiving and employing a carer. Below is a list of these forms along with their purposes:

  1. Claim for Home Carer's Tax Credit (Form HK1):

    • Purpose: To claim tax credit if you are a PAYE taxpayer providing care for a dependent person.

    • How to Apply: Complete the Home Carer Tax Credit claim form and submit it to your local Revenue office. Alternatively, you can claim this credit online through Revenue's myAccount service.

  2. Application Form for Carer's Allowance (CR1):

    • Purpose: To apply for a means-tested payment if you are providing full-time care to a person who requires it.

    • How to Apply: Download and complete the Carer's Allowance application form. Submit the completed form to the Department of Social Protection.

  3. Employed Person Taking Care of an Incapacitated Individual (Form IT47):

    • Purpose: To claim tax relief on the employment of a home carer for an incapacitated individual.

    • How to Apply: Complete Form IT47 and submit it to your local Revenue office.

  4. Application Form for Carer's Benefit (CARB1):

    • Purpose: To apply for a payment made to those who leave employment temporarily to provide full-time care.

    • How to Apply: Fill out the Carer's Benefit application form and send it to the Department of Social Protection.

  5. Incapacitated Child Tax Credit (Form ICC1 and ICC2):

    • Purpose: To claim tax credit if you are the parent or guardian of a child who is permanently incapacitated.

    • How to Apply: Complete Form ICC1 and have Form ICC2 certified by the child's medical practitioner. Submit these forms to your local Revenue office.

  6. Carer's Support Grant (CSG1):

These forms are essential for accessing financial support and tax reliefs available to carers and those employing carers in Ireland. Ensure you complete and submit the appropriate forms to the relevant authorities to avail of these benefits.

Why choose Obsidian Homecare Services?

  • Registered & revenue-compliant provider – Ensuring you qualify for tax relief

  • Flexible care plans – Tailored to your needs, whether part-time, full-time, or live-in care

  • Professional, highly trained staff – Including Registered Nurses, Carers, and Specialist Support Teams

  • Dedicated support team – Assisting with funding applications and care planning

At Obsidian Homecare Services, we are committed to making home care accessible, affordable, and stress-free.

Need help understanding tax relief? Contact us today!

If you need assistance understanding your tax relief options, applying for funding, or planning home care for a loved one, our friendly team is here to help.

Call us: 01 902 6767

Email us: enquiries@obsidianhomecare.ie

Let us help you navigate your home care options and access the financial relief available to you.