This allowance is treated as a deduction from your income and is claimable where you employ a person to take care of a family member who is totally incapacitated by old age or infirmity.
You can employ a carer through an agency or directly. If you directly employ a carer you will have to register for PAYE/PRSI and operate PAYE on the salary paid to the carer.
The maximum amount qualifying as a tax deduction against your income is €75,000.
This is a very valuable tax relief – remember you can go back four years to claim relief you are due if you have not already done so.