How you could benefit from tax relief for home care costs
Up to one-third of your care costs – or those of a family member – may effectively be funded via SARS. Here’s how.
Did you know that, in certain circumstances, a portion of professional home care and caregiving costs may qualify for tax relief through SARS under the Medical Expenses Tax Credit provisions of the Income Tax Act?
Whether you are providing or receiving care, now is the time to check if you or your loved one qualifies. Start with this Q&A:
- What kind of care could qualify?
Depending on the medical condition, who is paying for the care, and the taxpayer’s personal tax position, qualifying care costs may reduce the amount of tax payable or result in a SARS refund after assessment.
This often applies to:
- Long-term care for a person with a diagnosed disability or serious impairment
- Dementia / Alzheimer’s support where daily functioning is significantly affected
- Stroke recovery or ongoing neurological conditions
- Post-operative recovery care where medically required
- Nursing support at home after hospital discharge
- Certain frail care situations, depending on severity and medical evidence
A key factor is the need for a diagnosis confirmed by a registered medical practitioner, usually documented via a SARS ITR-DD form.
- Who may be able to claim?
Depending on the circumstances, the claimant may be:
- The person receiving care
- A spouse paying for the care
- An adult child supporting a parent
- A family member financially responsible for a dependant’s care
- What care-related costs count?
Caregiver costs can be claimed if they are for a person with a diagnosed disability (temporary conditions generally don’t qualify unless severe and prolonged). These include:
- Home-based caregiver / nurse / carer
- Frail care or dementia care
- Assistance with daily living (bathing, feeding, mobility)
- Nursing services and supervision
- How does the tax benefit actually work?
It’s not a flat refund, but rather a tax credit calculated based on income, age, and disability status. Here’s a quick breakdown:
- If the patient has a disability (most relevant case) you can claim 33.3% of all qualifying out-of-pocket medical expenses (including caregiver costs).
- If there is no disability (just medical expenses), only expenses above a certain % of income qualify and the benefit is usually much lower.
- Age matters: Over 65s get more favourable treatment (lower thresholds), whereas under 65s without disability probably only get a limited benefit.
- Can the tax relief be backdated?
Yes, SARS typically allows up to 3 years of reassessment, along with the following required documents:
- Supporting invoices
- Proof of payment
- Medical diagnosis (ITR-DD)
Remember, this is not an automatic rebate and not all care costs qualify. SARS will consider the situation, but it is worth trying.
Content by CareChamp.
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