Mortgage interest is only deductible against income from the property (i.e. For employees contributing to the state pension scheme, the deductible amount will be reduced by contributions paid by the employer to the state pension scheme, as those contributions are already tax exempt under the income tax act. In 2022, the tax deduction amounts to 94% of the actual contributions, at a maximum of 94% of EUR 25,639 (EUR 51,278), and increases to 100% in 2023. However, for a transitional period (2005 to 2023), only a reduced amount can be deducted. Pension scheme contributionsĬontributions to old-age pension schemes are, in general, tax deductible up to an overall limit of EUR 25,639 (EUR 51,278 for married taxpayers filing jointly). This only applies if these amounts have not already been utilised for health and long-term care insurance contributions. unemployment insurance) can be deducted up to a maximum of EUR 2,800 per year (EUR 1,900 for employees and pensioners). Unemployment insurance contributionsĪdditionally, contributions paid to certain other insurance policies (e.g. Contributions to long-term care insurance are also tax deductible under these circumstances. Health insurance and long-term care contributionsĬontributions to health insurance are completely tax deductible as far as these contributions are paid for primary basic healthcare. Social security contributions and insurance premiums can be deducted up to specified limits, as follows.
The special expenses that can be claimed are limited to EUR 5,000 per annum per child. Education expensesģ0% of tuition fees (except for housing, care, and food) for qualifying dependent children is deductible if a recognised private school located in the EU/EEA countries or a German school is attended and if graduation is approved by the government. Childcare expensesįulfilling certain requirements, a portion of the actual expenses for childcare can be deducted up to a maximum of EUR 4,000 per year/child for children younger than 14 years or for handicapped children.
Charitable contributionsĬontributions to German charities and certain international charities are deductible up to 20% of adjusted gross income. Individual taxpayers may take deductions up to EUR 13,805 for the alimony paid to a divorced partner. To the extent actual employment connected expenses exceed the lump sum of EUR 1,230, they are deductible if they can be substantiated. There is a blanket employee allowance for business deductions of EUR 1,230 per year. Various properly documented and necessarily incurred income related expenses may be deducted by an individual unless they are, in cases of employment relationship, reimbursed by the employer.įor employees, common tax deductions include:įor the years 2020, 2021, and 2022, employees who have switched to remote work are allowed to deduct EUR 5 (EUR 6 as of assessment period 2023) for each calendar day working from home, whereby the total sum is limited to EUR 600 per calendar year and thus the limit of days to be claimed is 120 (210 days as of the assessment period 2023).
0 kommentar(er)
