Hoping I can get some help with a Nursing Home-related query. An elderly relative has been in a nursing home under the Fair Deal Scheme for the last two and a half years. I have three specific questions:
1. Even though she is on the Fair Deal Scheme can she also claim tax relief in her own right on the circa €3,500 per month she is personally contributing to the cost of her care. She has a widows pension and State pension but does not pay any income tax on those. I want to establish if she can claim tax relief on the cost of her care even though she isn’t actually paying tax. If so, would this be at the lower 20% rate? We are within the three year time period for claiming this and the amounts are potentially substantial (i.e. €42,000pa x 20% = €8,400 pa)
2. She is running out of savings and family will need to contribute toward her care costs until she hits the 3 year threshold. If we make a contribution towards her care costs can we claim this back at our own marginal rates (all at the higher 40% rate) and do so via Revenue on Line. I understand the claim would be reimbursed through our employers payroll and if so, do you receive it in one lump sum or would your tax credits be spread out over the remainder of the year? We’re trying to work out our cash flow.
3. Presumably us making claims like this won't impact on the status of the (vacant) family home as her principal private residence. I am asking in the context of inheritance tax.
Many thanks
Garbanzo
1. Even though she is on the Fair Deal Scheme can she also claim tax relief in her own right on the circa €3,500 per month she is personally contributing to the cost of her care. She has a widows pension and State pension but does not pay any income tax on those. I want to establish if she can claim tax relief on the cost of her care even though she isn’t actually paying tax. If so, would this be at the lower 20% rate? We are within the three year time period for claiming this and the amounts are potentially substantial (i.e. €42,000pa x 20% = €8,400 pa)
2. She is running out of savings and family will need to contribute toward her care costs until she hits the 3 year threshold. If we make a contribution towards her care costs can we claim this back at our own marginal rates (all at the higher 40% rate) and do so via Revenue on Line. I understand the claim would be reimbursed through our employers payroll and if so, do you receive it in one lump sum or would your tax credits be spread out over the remainder of the year? We’re trying to work out our cash flow.
3. Presumably us making claims like this won't impact on the status of the (vacant) family home as her principal private residence. I am asking in the context of inheritance tax.
Many thanks
Garbanzo