All income tax deduction (in German tax return). A-D

Last Updated on September 27, 2023

From A as Additional education to D as Dysgraphia, dyslexia – all income tax deduction in German tax return.

If I write “is as außergewöhnliche Belastungen (Exceptional costs) deducted”, it means that this expenses are deducted only if they over individual limit.

How to calculate the limit of außergewöhnliche Belastungen read here
Other parts: E-H, I-N, P-W

Income tax deductions in this post:
additional education, sport club, music lessons
allergy
artificial pregnancy and insemination
attorney
au-pair
braces
citizenship change
church tax
computer
credit
dental crones, implants
donations, help in society
double housekeeping
dysgraphia, dyslexia, adhd

Additional education, sport club, music lessons

Not deducted.

Allergy

In case of allergies, you can deduct in the außergewöhnliche Belastungen, if it was not compensated:

– the cost of drugs and other medical measures (immunotherapy)

– even renovation the house if the allergy is caused by some materials

Conditions – all documents and doctor’s prescriptions must be collected before work begins.

Artificial pregnancy and insemination

The cost that is not returned from the Krankenkasse can be deducted as außergewöhnliche Belastungen. Krankenkassen return usually 50% cost. But there are also Krankenkassen, which return 100%.

Attorney

Usually not deducted, except in labor conflicts.

In case of divorce, it is not deducted.

Conflicts with the tenant – written off by the owner.

Labor conflicts – as Werbungskosten (works expenses).

Car accidents – only if they happened on the way to (from) work – as Werbungskosten.

Conflicts about the inheritance – not deducted. Only if we are talking about the lack of money for life, which requires a court decision by inheritance, – as außergewohnliche Belastung. The same if you want to reject an inheritance that is too burdened with debt and threatens your financial existence.

Werbungskosten in Anlage N

Au-pair

There are two types of expenses that can be deducted due to the au-pair: childcare and household assistance. The first is indicated in the Anlage Kind, the second in the Dienstleistungen (until 2019 in the main part of the declaration, page 3, from 2019 in a separate Anlage ).

If the contract with the au-pair does not specify how much time she takes care of the children, and how much she works on the household, then the Finanzamt considers them as 50 to 50. Since the deduction of childcare costs is more profitable than for the household, it is better to conclude with au-pair contract, which will state that childcare is 80 percent of the au-pair’s working time. It can’t be more than 80 percent.

In addition to the au-pair fee itself, the following expenses are also deducted: au-pair accommodation, travel, additional payment for language courses, insurance. Accommodation with an employer is estimated in Liste der amtlichen Sachbezugswerte. You can find it easy – google “Sachbezugswerte” and your year. It is also possible to deduct au-pair pocket money if you issue it via bank transfer and not in cash.

Braces

Deducted as außergewöhnliche Belastungen (the amount that has not been compensated). But Krankenkassen return usually full or almost full cost.

Citizenship change

The costs of changing citizenship cannot be deducted.

Church tax

Church tax is charged by:

• Katholische Kirche
• Evangelische Landeskirchen
• Altkatholische Kirche
• Judische Kultusgemeinden
• Israelitische Religionsgemeinschaften
• Freireligiose Gemeinden
• Franzosische Kirche zu Berlin
• Mennonitengemeinde in Hamburg-Altona
• Unitarische Religionsgemeinschaft Freier Protestanten in Rheinland-Pfalz

The churches listed are doing pretty well: 8 or 9 percent of income, plus real estate tax in some places or tax on low-earners, increased tax on spouses of those who left the church.

If you pay tax, you can deduct it at Sonderausgaben.

Computer

The cost of computer and the parts with it (mouse, keyboard, programs) can be written off only when they are used not only for personal, but also for work purposes.

If 90 percent of time or more are used for business purposes, then the full cost may be deducted. Wenn the percentage of use for work cannot be proven, it is estimated at 50 percent.

If the cost of a computer + components and software exceeds 800 euros (until 2018 – 410 euros), then it is written off within three years. The month of purchase is also taken into account. For example, if you bought a computer in August, you must divide the cost by 36 and multiply the number of months of ownership by that amount. That is, in fact, the write-off will take four years.

If the cost does not exceed 800 euros, then you can write off immediately.

From 2020 you can deducte full costs (as a percentage of use for work).

The cost of components and programs is

• included in the cost of the computer if they are purchased at once;
• added to the residual value of the computer if they are purchased in the process of being written off;
• or deducted immediately if the computer has already been deducted. And their cost does not exceed 800 euros.

Where: Anlage N, Werbungskosten: Aufwendungen für Arbeitsmittel.

Credit

A car credit can only be written off if the car was purchased by an individual entrepreneur for work purposes.

Dental crones, implants

Most of the dental treatment activities can be included in the außergewöhnliche Belastungen, including implants, crowns, professional dental cleaning.

Donations, help in society (social club)

Tax-deductible organizations include churches, universities, government museums, open societies and foundations, and political parties. The organization must be located in Germany. Donations to beggars or to a church mug for tax purposes do not count.

For example, you can deduct donation for school help society (Schulförderverein).

In addition to money, you can donate things. To do this, they must be evaluated. New things are priced at a price tag. Old things are priced at the average cost in the second hand market. Donated items should be correspond with the goals of the organization to which they are donated. Books to the library, and old clothes for the poor, and not vice versa. The organization must issue a Zuwendungsbestätigung, which describes the items donated, their condition, age, original value, date of donation.

A special case of donation is the waste of one’s own labor and funds. It names Aufwandsspende and Vergütungsspende. For example, you make trips in your own car for the purposes of Verein, make a lot of phone calls, do some work. To be able to deduct these costs, they must be recorded in the contract with the Verein. For example, the contract says that you take children to competitions. And for this you must receive 30 cents for each kilometer. If you refuse this money, you can receive a Zuwendungsbestätigung for the amount spent and enter it on your declaration.

In total you can deduct 20 percent of your income as donations. The excess amount can be carried over to the next year.

Membership in organizations can only be deducted if those organizations do not have leisure goals. That is, cost of membership in gardening societies or a sports club has nothing to do with tax deductions.

Donations of up to € 200 (from 2021 – 300 euros) do not require special processin. You can simply provide an account statement or a stamped bank receipt. In case of disasters, donations over 200 euros can be formalized in a simple form.

Double housekeeping (doppelte Haushaltsführung)

If your job is far from where you live, you can rent or buy a second apartment. It should be at least half as close to work as your main residence. You must pay at least 10 percent of the maintenance of the main apartment and be able to prove that your “center of life” is located there. For example you often go home, have a family there, go to the Verein).

it is especially difficult (impossible) to prove the center of life for young people who indicate as the main – parental home and as the second – new separate home.

Doppelte Haushaltsführung is deducted up to a maximum of EUR 1,000 per month. These include:

• rent (interest on a loan for purchased housing)
• cleaning of the common house territory
• garbage removal, chimney sweep, cleaning of the local area
• TV fee
• parking cost
• tax on the second apartment
• expenses for the maintenance of special areas belonging to the second dwelling (for example, the maintenance of a garden)
• the cost of a broker for finding an apartment, ads
• moving
• repairs (wallpaper, floor)
• the cost of the necessary things (kitchen, bed, table, wardrobe, chairs, refrigerator, shower curtain)

The furniture can be deducted according to the rules – see Work’s expenses in part 4.

• a working room
• trips home once a week (30 cents per km) or 15 minutes of talking on the phone once a week at 1 euro per minute.
• during the first three months for each day in the second apartment cost for food and drink, pauschal sum (Verpflegungsmehraufwand – see Google for each year. For example from 2020 – 28 euros per day)

Dysgraphia, dyslexia, ADHD

In case of attention deficit disorder, dysgraphia, dyslexia (ADS, ADHS, Legasthenie, Dyskalkulie), if there is a conclusion from Amtsarzt (this is the doctor who sits in the Gesundheitsamt), expenses are counted as außergewöhnliche Belastungen:

• cost of doctors and medicines
• cost of tutor and materials
• the cost of a private school (if needed due to illness)
• cost of psychotherapy
• accompanying a child, cost of the road to medical institutions

Next – Part 2 E-H
all post about #german income tax declaration

All I can return from tax: A-D, E-H, I-N, P-W
Anlage N Part 1, Part 2, Anlage N-Aus, Anlage Wa-Est, Homeoffice
Anlage Kind
Anlage Vorsorgeaufwand
Anlage Sonderausgaben
Anlage Haushaltnahe Diensleistungen 35a
Who should file a tax return in Germany
Pre-filled declaration in Elster
How to calculate tax in Germany. What is written in Berechnung in Elster
Freiberufler in Germany: how to fill in Anlage S and Fragebogen zur steuerlichen Erfassung