In principle, there are two tax-deductible possibilities for taxpayers who are dependent on the care for home care costs:
-Tax deduction for household services acc. Section 35a EStG.
-Tax deduction for extraordinary charges acc. Section 33 EStG ff.
Both can be used, but the costs can only be claimed once. So can the tax deduction for household services (§ 35 EStG) only be used to a maximum amount of € 4,000. Only the expenses remaining hereafter can be claimed as extraordinary expenses (§ 33 EStG).
In Germany, home care benefits can be deducted from income tax. Persons who care for their dependents can claim up to € 4,000 annually as care expenses, irrespective of any remuneration of long-term care allowance from long-term care insurance.
In order to deduct your income-tax you must be the named client on the bill of the care service company. To proof the costs against the tax office, one should pay by official money-transfer. The nursing services must be provided in your household or in the household of your dependents. An invoice from the service provider is also needed and should clearly divide between deductable service costs and material costs, which are not deductable.
Section 35a of the Einkommensteuergesetz (EStG) regulates the tax deduction for so-called household-related services. However, the costs can be deducted for care services which are usually done by a family member but actually provided by a company.
The company relieves tax-benefit recipients of their socially and morally expected aid. The services include gardening, cleaning and, as in this case, elderly care of relatives in private households. In contrast to other beneficiaries of household services, household care services can receive personal services such as hair cutting and foot care.
For household-related services, 20% of the invoiced wage costs, max. 4000€, can be deduct in your declaration of income max. The emphasis is on labor costs, since material costs must be subtracted from the invoice sum if necessary.
Example: over the year you got 12 invoices each 1200€ in total, 200€ for material. So you can take 20% of the 12000€ for service costs into account for the full year. 20% of 12000€ is 2400€, which can be fully deducted from your income tax.
The care costs remaining after deduction for household-related services can be claimed as an exceptional burden in the income tax declaration. Since the care costs remain to this extent, regardless of the fact that they are included in the calculation of the deduction for household services, there is nothing against a tax deduction as exceptional burden.
According to §33 EStG, expenses are extraordinary costs if they are necessarily for the taxpayer because of legal, real or moral reasons. There is no upper limit for the tax deduction, but a reasonable ammount, depending on personal tax situation, which can not be deducted. The reasonable amount is primarily dependent on the income level, the number of children.
There is no upper limit for the tax deduction, but reasonable charge, which can not be deducted. The reasonable amount is primarily dependent on the income level and the number of children: The table show the calculation of the reasonable percentage the taxpayer cannot deduct from his tax.
|...up to a max. income of...||bis 15.340 €||über 15.340 € bis 51.130 €||über 51.130 €|
|1. Taxpayers without children ...|
|in % according to the basic table||5 %||6 %||7 %|
|in % according to the splitting table||4 %||5 %||6 %|
|2. Taxpayers with...|
|...one or two children||2 %||3 %||4 %|
|...three or more children||1 %||1 %||2 %|
|...... of the total amount of the income.|
Single person without children with € 50,000 total income (GdE = sum of the positive and negative income of all income types of one year) and a total of € 12,000 maintenance costs.
20% of 12.000 €=2.400 € (20% of the care costs)
remaining care costs=9.600 €
50.000 €*6%=3.000 € (GdE * Percentage from table = reasonable amount)
Steuersatz gem. Einkommensteuertabelle: 17,84% (Wir unterstellen, dass der Gesamtbetrag der Einkünfte [GdE] gleich dem zu versteuernden Einkommen [zvE] ist, d.h. zvE = 40.000 €)
Income tax savings acc. $ 33 EStG = 17.84% of € 9,600 = 1.177,70 €
In total, income tax relief of3.577,70 €,is incurred, while the nursing costs are reduced to € 8422.30 per month, from € 1,000 to 701,86 € per month ..