Tax Relief (Nursing home costs)

[dewdrop]

I am a bit confused how this works. Usually one sees a comment saying you may claim tax relief at your highest rate for nursing home costs. One can be tempted to think that the cost will then be reduced by the higher tax rate. I assume to achieve this one has to be liable to pay this amount of tax. if say Nursing home costs came to 80K euro yearly and a persons income is much the same then will all the tax charged and paid be refunded...I apologise for not putting my query in a more clear fashion.

 

[alexandra123]

I am not aware of any cap on the amount you can claim back.

Below is my understanding of how it works.
If you pay 40% tax on all the income and earn over or near the 80k - then the revenue should refund you the money based on 40% of the 80k costs so your return value will be 32,000. You can claim this money back in the following year. If you were struggling to make payments - the revenue should be able to give you the tax relief during the current year spread out across the 12 months. I am not sure - what documentation you need for them to support this..