Family and children

State costs in case of doubt: Reduce taxes with extraordinary burdens

Summary

Berlin (dpa / tmn) – Special circumstances can lead to additional private spending. With the regulation on these extraordinary burdens, the legislature wants to alleviate unreasonable hardship in taxes. Much falls into this category. Taxpayers should report these costs when […]

State costs in case of doubt: Reduce taxes with extraordinary burdens.  Those who have to go to hospital for a long time may also have higher costs to get well again.

Berlin (dpa / tmn) – Special circumstances can lead to additional private spending. With the regulation on these extraordinary burdens, the legislature wants to alleviate unreasonable hardship in taxes. Much falls into this category. Taxpayers should report these costs when in doubt.

Important questions and answers:

What is one of the extraordinary loads?

Those who have higher costs than most other taxpayers with similar incomes, assets and marital status have extraordinary burdens. If these expenses are inevitable and unpredictable, the law allows them to reduce the tax burden. A distinction is made between special and general extraordinary burdens.

The general ones include, above all, medical expenses. “Costs for glasses or dentures, additional payments for cures or medication. These are the classics that most people tend to have, ”says Isabel Klocke from the Taxpayers Association. This can also include costs resulting from severe storms.

The other is the special, extraordinary burdens. “This is, for example, a child who is housed away from home, for example at boarding school or studying in another city,” explains Klocke. In the end, the list is long. When in doubt, it is always worthwhile to state expenses. In the worst case, these will not be recognized.

How high must the extraordinary loads be?

The two types of extraordinary loads are calculated differently. “There are fixed allowances for special, extraordinary burdens. They are independent of income, ”explains Wolfgang Wawro from the Berlin-Brandenburg Association of Tax Advisors. This includes lump sums for carers, for example. These are immediately noticeable from a tax point of view.

It is somewhat different with the general extraordinary burdens such as the medical expenses. The general rule here is: Only that which exceeds the so-called reasonable burden is deductible. That is the amount that taxpayers have to shoulder themselves.

How is this reasonable burden calculated?

This limit is always calculated individually and is between one and a maximum of seven percent of income. In addition to the total income of an individual or a married couple, the number of children is decisive for this. “Anyone who has several children and a small income is quicker to make claims than a single who earns well and also has no children,” explains Klocke.

An example: A married couple with two children and an annual total income of 60,000 euros has an acceptable limit of 1,735.30 euros. For example, if the family had medical expenses of 2000 euros a year, around 265 euros could reduce taxes, explains the Federal Association of Wage Tax Assistance Associations (BVL).

How is the item indicated in the tax return?

The extraordinary loads are queried on page three of the jacket sheet. Receipts do not have to be attached; they may be requested. The tax office examines different priorities from year to year. Here, anomalies are searched for. If the extraordinary burdens are concerned, dental bills or costs for a spa stay can be requested if a taxpayer states high costs here in one year.

Can you estimate in advance whether it’s worth it?

“There are computers on the Internet for a reasonable personal burden,” explains Isabel Klocke – for example online on the financial administration’s website. In case of doubt, the expert recommends entering the costs in any case on the tax form. “Then you haven’t given anything away. It just takes a bit of work. “