Health and long-term Care Insurance Premiums

Premiums paid for basic health and long-term care insurance are fully deductible as special expenses. This includes the employee’s share, although it is reduced by four percent. This deduction acknowledges the importance of health coverage and provides tax relief for those investing in their well-being.

Tax Form Entry: Preventive Effort System

Contributions to Statutory Pension Insurance

Contributions to statutory pension insurance, along with contributions to a Rürup pension (a type of private pension plan), are also deductible, subject to a legally defined maximum limit. For the 2024 tax year, this limit was €27,566 for single individuals and €55,132 for jointly assessed couples. These deductions incentivize retirement savings and provide tax benefits for long-term financial planning.

Tax Form Entry: Preventive Effort System

Private Retirement Provision (e.g., Riester Pension)

Contributions to a Riester pension, a government-subsidized private pension plan, are considered special expenses up to a maximum amount. The exact amount varies depending on individual circumstances and contribution levels.Riester pensions are designed to supplement statutory pension income and provide additional financial security in retirement.

1. Commuting Costs: Claiming Travel Expenses

One of the most common deductions is for commuting costs. Taxpayers can deduct a certain amount per kilometer for each workday they travel to their primary place of employment. The exact amount deductible depends on the mode of transportation and the distance traveled. For example, for the first 20 kilometers, you can deduct 0.30 euros per kilometer, and for each additional kilometer, the deduction increases to 0.38 euros.

Entry in the tax return: System N

2. Work Equipment: Deducting Professional tools

Expenses incurred for work-related equipment, such as laptops, tools, or specialized clothing, can be fully deducted if they are primarily used for professional purposes. For items costing more than 800 euros (excluding VAT), the cost must be depreciated over the item’s useful life. However, for less expensive items, the full cost can be deducted in the year of purchase.

Entry in the tax return: System N

3. Home Office Deduction: Claiming Workspace expenses

Taxpayers who work from home can deduct expenses related to their home office. This includes rent, utilities, and other related costs. The requirements for claiming this deduction are strict; the home office must be a separate,dedicated workspace used almost exclusively for professional activities. If the requirements are met,you can deduct up to 1,250 euros per year. However, if no other workplace is available, the deduction can be unlimited.

Daniela Karbe-Geßler from the Federation of Taxpayers explains the “Cheap test”:

Guarded allowances are deducted from this. If tax savings are higher than the allowances, the difference is credited.
Daniela Karbe-Geßler, Federation of Taxpayers

Entry in the tax return: Anchored of

4.childcare and School Fees: Supporting Families

Parents can deduct childcare expenses for children under 14 years of age. For 2024, the tax office recognizes two-thirds of the costs, up to a maximum of 4,000 euros per child. From 2025,this amount increases to 4,800 euros. This deduction is available regardless of whether the parents are employed.

For children with disabilities, the age limit is waived. Additionally, parents who send their children to private schools, such as Waldorf schools, can deduct 30 percent of the school fees, up to a maximum of 5,000 euros per year, as special expenses.

Entry in the tax return: System child

5. donations: Supporting Charitable Causes

Donations to non-profit, religious, or charitable organizations are tax-deductible up to 20 percent of the taxpayer’s total income. According to Seriser, any excess amount can be carried over to the following year.

if the amount of the donation is above,the excess amount can be transferred to the next year.
Seriser

Entry in the tax return: Establishment of special expenses

6.Membership fees: Investing in Professional Progress

membership fees for unions,such as Verdi or IG Metall,and professional associations,such as medical or legal chambers,are deductible as work-related expenses. Taxes paid to the Chamber of Commerce and industry or the Chamber of Crafts can also be deducted.

entry in the tax return: System n

7. Account Management Fees: Covering Banking Costs

Costs associated with maintaining a checking account can also be deducted. The tax office typically accepts a standard deduction of 16 euros without requiring individual proof. Higher amounts can be claimed if properly documented.

Entry in the tax return: System n