Person Employed to take care of an Incapacitated Individual
Who can Claim?
A family member who employs a person to care for an incapacitated relative.
Conditions to Qualify
- Individual must be totally incapacitated by physical or mental infirmity.
- Incapacity must be throughout the year of assessment. However, it is not necessary for the person to be employed for the full year. While the words " throughout the year of assessment" prohibit the claiming of the relief for the year during which the individual became totally incapacitated, with effect from 1 January 2004:-
Relief may be allowed for the year during which the individual became totally incapacitated however the deduction is the lower of either:-
Tax year 2004 and 2005
- actual costs incurred; or
- The maximum deduction of ( €30,000 for the years 2004 and 2005 and €50,000 for the year 2006 and subsequent years)apportioned by the number of months the individual was permanently incapacitated in the first year.
Tax year 2006 and subsequent years
- actual cost incurred; or
- the maximum deduction of €50,000. There is no requirement to apportion the relief. Person may be employed through an agency.
Person may be employed through an agency.
The amount of the allowance is the net cost of employing the person subject to a maximum limit (see chart).
i.e.: Cost of employing person less any amount received from the Health Service Executive, Local Authority etc.
It is not conditional on the claimant to register as an employer, but as an employer, he/she will have certain PAYE/PRSI and USC obligations.
- Leaflet IT 47 - Employed Person Taking Care of an Incapacitated Individual
- A deduction is allowable in respect of expenditure incurred in employing a person to take care of a taxpayer, or a relative of the taxpayer, who is totally incapacitated by reason of mental or physical infirmity.