Self-paid contributions to basic health and long-term care insurance can regularly be taken into account in full as special expenses. (Special expenses deduction, health insurance contributions, long-term care insurance contributions – Federal Fiscal Court see below.)

Health insurance contributions and long-term care insurance contributions

In the case of parents, this also applies to corresponding contributions incurred by their dependent child if the child’s expenses have no tax effect due to insufficient income (e.g. as part of a training relationship). The child’s health insurance contributions and nursing care insurance contributions can generally only be taken into account once in total as special expenses.

Maintenance in kind was not recognized.

The Federal Fiscal Court had ruled that – contrary to the administrative opinion – it is only possible to claim the child’s pension expenses under the parents’ special expenses if the parents have borne the contributions directly as a payment or by way of cash maintenance. In the case in question, the parents fulfilled their maintenance obligation in the form of maintenance in kind (including free housing); the court did not recognize the special expenses deduction for the parents in this respect.

The financial management

does not apply the restrictive view of the Federal Fiscal Court. This means that parents who have economically borne corresponding contributions of the child can claim these in their special expenses, whereby it does not matter whether maintenance was borne in the form of cash or in kind.

Neumann & Walczak – tax consulting company GmbH – Robert-Bosch-Strasse 1 – 59439 Holzwickede

Neumann Walczak & Partner Tax Consultant and Lawyer – Partnership –
Robert-Bosch-Strasse 1 – 59439 Holzwickede

Website: www.neumann-walczak.de – E-mail: info@neumann-walczak.de

Phone: (0049) 02301 – 91 291 0 – Fax: (0049) 02301 – 91 291 21