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Tax Tips March 2019

Tax Relief on Nursing Home Expenses

You may claim income tax relief on nursing home expenses paid by you. You can claim this relief at your highest rate of tax if the nursing home provides 24-hour on-site nursing care.

Nursing Homes Support (Fair Deal) Scheme

The Health Service Executive (HSE) can provide you with assistance for the cost of your nursing home care. The HSE will review your income and assets to calculate the amount you should pay towards the cost of your care. You can claim health expenses relief on the amount you pay yourself.  The HSE pay the balance of the costs of the nursing home. You cannot claim health expenses relief on this amount.

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 health expenses on the amount paid by the HSE to the nursing home.

The loan is due to be repaid:

When you sell the asset used as security or upon your death.

When the loan is repaid, you or your estate can claim health expenses on the amount repaid.

Receiving relief during the tax year

In certain circumstances, Revenue can grant you relief on nursing home expenses during the tax year. To request this, contact your Revenue Office with details of your claim.  If you do receive tax relief during the year, you must complete your claim details after the year ends, as normal.

Additional nursing care expenses

You can claim relief for the cost of expenses of additional nursing care. If you or your relative 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.  Or, if you are in a nursing home and require more nursing care than is normally required.  To claim this relief, you must provide a medical certificate that states that either constant nursing care by a qualified nurse in the patient’s home is necessary, or additional nursing care in the nursing home is necessary, shows the name and address of the patient, outlines the nature of the patient’s illness and covers the full period for which home nursing is being claimed.  You must also provide the nurse’s full name and address, as well as proof of their nursing qualification.  You must keep a breakdown of all payments to the nurse and all payment receipts.

How to claim

To claim tax relief on nursing home or additional nursing care expenses, you must include the amount in your health expenses and enter on your tax return.

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