How does the tax relief credit work?
Kare Plan wants to help it easier to understand the process to get the home carer tax credit for those who work in home help and home care services.
This tax credit is obtainable if you are caring for a relative or spouse who is deemed incapacitated due to a disability, illness or injury. A relative includes a relation by marriage and a person in respect of whom the claimant is or was the legal guardian.
Tax relief can be claimed by the billpayer at their marginal rate of tax (either 20% or 40%).
How do I apply for the tax relief?
We can instruct you on how to fill out the HK1 Form, also known as the ‘Claim for an Allowance for Employing a Carer’.
Once completed, you can claim tax relief at the end of the year or monthly through your wages.
If you are not working or paying tax, you can still receive this cash back through other members of your family up to a total of €75,000 at their marginal tax rate.