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.
Relief may be allowed for the year during which the individual became totally incapacitated however the deduction is the lower of either:
- actual cost incurred, or
- €75,000 (€50,000 to 2015) at the claimant’s highest rate of tax.
There is no requirement to apportion the relief.
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 or 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.