I have been paying for my mothers nursing home fees for the past 10 months and I have recently applied for the fair deal scheme.I was wondering about claiming back the tax relief at the higher rate of 41% on Nursing home fees.I pay about 10K at this rate a year and I am a little confused about the calculation.Can I claim the whole 10k back or is it just 41% of the 10K?
If you have an income of, say, 60,000 you will be taxed on 60,000. If you have a 10,000 nursing home bill this will be deducted from the 60,000 to leave you with a taxable income of 50,000.
Thus you save the tax on 10,000 I.e 40% @ 10.000 = 4,000.
Need help with calculating my Fathers Tax rebate on his nursing home bill where He has paid a total of 30k this year to the Home. He has a small private Pension and pays very little Tax on it...I read somewhere that He would be entitled to 20% rebate on the 30k.
Any idea on how to calculate what He is entitled to based on the above...Best Regards..