Tax relief with and without care level - Here's how it works

The tax return on a beer mat. A few details and done. We're still dreaming of it. The reality is different. Especially if you want to deduct the costs for care or support in the household or everyday life. We will tell you under what conditions you can save taxes:

For all with a care level applies:

Those who require care can claim the resulting costs as extraordinary expenses for tax purposes. This applies regardless of whether the person is accommodated in a home or not.

People with a care level should apply for a disability card and can then claim a tax allowance in their income tax return instead of a tax reduction. Provided that the degree of disability (GdB) is at least 50 percent.

If the degree of disability is between 25 and 45, tax relief can only be claimed if statutory pensions or other regular benefits are received, or if there is a restriction in physical mobility or a typical occupational disease. The amount of the annual tax exemption ultimately depends on the degree of disability and ranges from a minimum of 310 euros to a maximum of 3,700 euros.

If the person in need of care is placed in a home, the costs can be claimed for tax purposes after deducting possible reimbursements of aid and household savings. Household savings refer to the amount saved by not living in one's own apartment anymore. For this, the tax office uses the basic tax allowance as a basis. In addition, a reasonable burden for the person in need of care is calculated, among other things, based on the total income and the number of children.

If the children cover the costs, they can partially deduct them as extraordinary expenses for tax purposes. However, a personal contribution is also considered a reasonable burden in this case.

If the person in need of care is cared for free of charge by their relatives and has a care level of four or five or a severely disabled person's ID with the marker H, the caring relatives are entitled to a care flat rate of 924 euros per year, which they can claim on their income tax return.

For all those without a care level, the following applies:

Up to 20 percent of a maximum of 20,000 euros per year, i.e., 4,000 euros, can be deducted from taxes as household-related services.

Prerequisite: The services were provided in the household of the person in need of assistance, and the payment was made via bank transfer. Furthermore, an invoice must be available.

If you employ a mini-jobber in the household, 20 percent of the expenses, up to a maximum of 510 euros per year, can also be claimed for tax purposes.

Good to know: This tax bonus can also apply to residents of a nursing home under certain circumstances. However, the prerequisite for this is that an independent household is maintained in the home. This is the case when a flat or apartment within the home is occupied, which has a bathroom, a kitchen, as well as a living and sleeping area.

If you only occupy one room, the expenses for room cleaning can be claimed.

Anyone moving into a retirement home due to age cannot claim the costs incurred as an extraordinary burden for tax purposes. Instead, these costs are considered regular living expenses and are covered by the basic tax allowance of €8,820 (2017) or €9,000 (2018).

If the children assume the costs for accommodation in a home, a maximum of 9,000 euros can be claimed for tax purposes per year.

Requirement: These are maintenance payments to needy individuals. In this case, a maximum amount of 8,820 euros (2017) or 9,000 euros (2018) can be deducted as an extraordinary burden of a special kind, without a reasonable burden being calculated. The deductible maintenance maximum amount is based on the basic tax-free allowance.

Additionally, contributions to basic health and nursing care insurance can be deducted beyond the maximum amount. This applies regardless of whether the amounts are paid to the needy person or directly to the insurance company.

Good to know: The contributions do not actually have to be paid or reimbursed by the person responsible for maintenance. It is sufficient if the person fulfills a maintenance obligation in the form of in-kind support, such as accommodation and meals.

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