Tax Deduction for Expenses Related to the Care of a Dependent Elderly Person

When you are caring for an elderly parent or relative who requires constant attention, the challenges are not only emotional and physical — they are financial too. Between monthly medications, medical consultations, rehabilitation treatments, and often the services of a professional carer, costs accumulate quickly. Many families in Romania live with the feeling that they are bearing this burden alone, unaware that the state offers certain tax benefits that can ease the financial pressure.

Romanian tax legislation allows deductions for individuals who support dependent elderly persons with certain degrees of disability or conditions that reduce their autonomy. However, this right is often unknown or not exercised due to confusion surrounding eligibility requirements, documentation, and procedures. In 2026, more and more families are beginning to understand that financial planning also means knowing one's tax rights — not just to save money, but to invest more in the quality of care for their loved ones.

This article is intended for all those who want to know exactly what they can deduct when caring for a dependent senior, what conditions must be met, and how to avoid mistakes that could lead to a rejection by ANAF.

Contents

1. Which care expenses are tax-deductible
2. Who can benefit from deductions: essential conditions
3. Documents required to support the deduction
4. Additional personal deduction vs. other tax benefits
5. Common mistakes and how to avoid them
6. What to check with your accountant before filing your return
7. Frequently asked questions

Which care expenses are tax-deductible

When it comes to tax deductions for caring for a dependent elderly person, it is important to understand that not all expenses fall into this category. Romanian tax legislation draws a clear distinction between the additional personal deduction for dependants and the deduction of certain specific healthcare expenses.

In principle, families may benefit from a monthly additional personal deduction from their taxable income if they support a person with a severe or pronounced disability. This is not a reimbursement of actual expenses, but rather a reduction of the tax base. The amount deducted varies according to the degree of disability of the person being cared for, and is applied monthly throughout the entire tax year.

Categories of indirectly eligible expenses

In addition to the personal deduction, there are specific expenses that may be deducted from annual taxable income under the Tax Code:

• Contributions to private health insurance — including for the dependent person
• Donations to organisations providing medical and social care — within the legally permitted percentage of income
• Payments towards optional private pension contributions for the dependent person, under certain conditions
• Interest on loans for medical needs in specific cases, if documented and justified

It is essential to understand that purchasing medications, medical equipment, or paying home carers are not directly tax-deductible from taxable income, except in situations where these services are provided by authorised entities and payment is made through contracts that allow for deduction (for example, home medical subscriptions offered by authorised clinics).

Who can benefit from deductions: essential conditions

Not every situation involving the care of a senior entitles one to a tax deduction. The law sets out clear conditions relating to the degree of disability, family relationship, and the income of the dependent person. Understanding these criteria is crucial to avoid wasting time on unnecessary documentation or missing out on benefits to which you are entitled.

Conditions related to degree of disability

The additional personal deduction is granted only for individuals who hold a disability classification certificate issued by the competent authority. The degree must be:

• Severe disability — entitles the carer to the maximum deduction
• Pronounced disability — entitles the carer to a significant deduction
• Moderate or mild disability generally does not entitle the carer to the additional personal deduction

Accepted family relationships

The law permits deductions for dependants where there is a direct family relationship or other legally established relationship:

• Parents and grandparents
• Spouse
• Adult children with disabilities (whilst not seniors, the same legal principle applies)
• Other persons legally in one's care, as established by court orders or guardianship documents

Income condition for the person being cared for

To be eligible for the deduction, the dependent person must not have significant income of their own. The threshold is generally set at the level of the national gross minimum wage. If the senior receives a pension or other income exceeding this limit, the right to a deduction may be lost or reduced. Carefully review the financial situation of the person in your care before applying for the deduction.

Documents required to support the deduction

Once you have established that you meet the conditions, you must prepare documentation to support the tax deduction. ANAF pays close attention to detail, and the absence of a single document can lead to the rejection of the application or require subsequent clarifications that delay the process.

Main document checklist

1. The disability classification certificate for the dependent person — a certified true copy of the original, valid at the time of the application
2. Proof of family relationship — birth certificates, marriage certificate, as applicable
3. A statutory declaration from the person applying for the deduction, confirming that the person is in their care and does not earn income above the legal threshold
4. The Declarația unică (Form 212) filed annually with ANAF, explicitly naming the dependent person
5. Proof of the dependent person's income — a statement from the Casa de Pensii or a statutory declaration if they have no income

Additional documents for other deductions

If you are also claiming other types of deductions (private health insurance, donations, etc.), you will need:

• Health insurance contracts and policy documents, together with proof of payment
• Evidence of donations made to authorised organisations (contracts, receipts, payment orders)
• Any other document required by current tax legislation for the relevant category of expenses

Keep all documents in both electronic and physical copies for at least five years, in case of subsequent checks by ANAF.

Additional personal deduction vs. other tax benefits

Many taxpayers confuse the additional personal deduction with other tax benefits available in Romania. Although all of them aim to reduce the tax burden, the mechanisms and conditions of application differ significantly.

Additional personal deduction

This is applied monthly and reduces the income tax calculation base. The amounts are fixed, set annually by the Tax Code, and vary depending on the number of dependants and their degree of disability. For example, for a person with severe disability in one's care, the monthly deduction may be significantly higher than the basic personal deduction granted to all employees.

Other tax benefits

In addition to the personal deduction, there are:

• Deductions for contributions to private pensions and health insurance — capped at a maximum annual amount, but may be combined with the personal deduction
• Income tax exemptions for certain categories of pensioners — this is not a deduction but a full exemption under certain conditions
• Benefits for war veterans and other special categories — with distinct rules
• Deductions for educational expenses — if the person being cared for attends certain rehabilitation or therapy courses, a deduction may theoretically be possible, though this is very rare in practice

The key difference is that the additional personal deduction is a permanent entitlement, applied monthly, whilst the other benefits depend on specific actions (paying an insurance premium, making a donation, etc.) and are claimed annually through the Declarația unică.

Common mistakes and how to avoid them

Even well-intentioned families can make mistakes when claiming tax deductions. Some of these mistakes are minor and can be corrected quickly; others can lead to the complete rejection of the deduction or even to penalties from ANAF.

Mistake no. 1: Claiming the deduction without a valid disability certificate

The disability classification certificate has a period of validity. If it has expired, the right to a deduction is automatically lost. Ensure that the reassessment is carried out on time and that you always hold a valid certificate.

Mistake no. 2: Declaring a person who exceeds the income threshold

If the senior in your care receives a pension or other income exceeding the legal limit, they can no longer be considered a dependant. Review the situation regularly and update your declaration if any changes occur (for example, a pension increase).

Mistake no. 3: Failing to file the Declarația unică on time

The Declarația unică (Form 212) must be filed annually, generally by 25 May (or by 25 July if income is estimated). Failing to file, or filing late, may result in the loss of the right to a deduction for that year.

Mistake no. 4: Confusing the deduction with reimbursement of expenses

Many people believe they will receive back the money spent on medications or carers. In reality, the deduction reduces the amount of tax paid — it does not reimburse actual expenses. If you do not have sufficient taxable income, the benefit may be limited or non-existent.

Other common mistakes

• Failing to update details following a change in legal status (divorce, death, etc.)
• Submitting incomplete documents or documents not certified as true copies of the original
• Multiple people claiming the deduction for the same senior (for example, two siblings)
• Neglecting to retain supporting documents for the legally required archiving period

What to check with your accountant before filing your return

Even if you understand the general principles of tax deductions, working with an authorised accountant or tax adviser can make the difference between maximising your benefits and losing important entitlements. Tax legislation changes frequently, and ANAF's interpretations can vary.

Key points to discuss with a specialist

1. Full eligibility check — the accountant will review all documents and confirm whether you meet the conditions or whether there is a risk of rejection
2. Precise calculation of the deduction — depending on your income, the number of months the person was in your care, and their degree of disability, the final amount may vary
3. Overall tax optimisation — it may be possible to combine the personal deduction with other benefits (insurance, donations) to reduce your tax liability further
4. Correct completion of forms — the Declarația unică has specific sections for each type of deduction, and an error in a tick-box or code can lead to automatic rejection
5. Tax audit scenarios — discuss which documents to retain and how to respond if ANAF requests clarifications or further checks

When consulting a specialist is essential

If your situation involves more complex elements — for example, you have income from multiple sources, you have several dependants, or your status changed during the year — consulting a specialist becomes essential. Similarly, if you have had previous issues with ANAF or are unsure about the interpretation of a legal provision, do not hesitate to invest in a professional consultation. The cost is generally small compared to the tax benefit you may gain, or the fines you may avoid.

Frequently asked questions

Can I deduct the cost of medications for my elderly parent?

Not directly. Medications purchased from a pharmacy are not tax-deductible from taxable income. However, you may benefit from the additional personal deduction if your parent holds a severe or pronounced disability certificate and meets the other conditions.

What if I discover I was entitled to a deduction but did not claim it in previous years?

You may file amended returns for previous years, within the statute of limitations (generally five years). Contact an accountant to assess whether it is worth the effort and what documents are required for the adjustment.

Can I claim the deduction if I am caring for my grandmother rather than a parent?

Yes, provided your grandmother is in your care, holds a valid disability certificate, and does not exceed the income threshold. You will need documents proving the family relationship (your own birth certificate and that of the parent who is your grandmother's child).

Is the additional personal deduction amount updated annually?

Yes, the amounts may be updated through amendments to the Tax Code or government decisions. Check the current figures each year to correctly calculate the tax benefit to which you are entitled.

If both my spouse and I are employed, who can claim the deduction?

The deduction may only be claimed by one spouse at a time — not by both simultaneously for the same dependant. As a rule, it is claimed by whichever spouse has the higher income, to maximise the tax benefit, though you may choose otherwise if your tax situations differ.

What is the risk if I make a mistake in my declaration?

If the mistake is made in good faith and you correct it promptly by filing an amended return, there are generally no penalties. However, if ANAF considers that you have intentionally provided false information, you may face fines and interest on any tax shortfall. This is why checking with a specialist is essential.

Caring for a dependent senior is a significant responsibility, but you need not bear it alone — neither emotionally nor financially. Tax deductions are a right recognised by law, and making proper use of them can free up important resources to provide your loved one with the care they deserve. If you want to ensure you are benefiting from all the tax advantages to which you are entitled, schedule a consultation with a tax adviser or a trusted accountant, and get your documentation in order — the time invested will pay off in the form of greater security and real savings.

This article is for informational purposes only and does not replace medical or tax advice. For specific situations, please consult an authorised specialist.