(2023) Who can claim exceptional costs?

Basically, everyone! Anyone with exceptional expenses can claim them in their tax return. This reduces the income tax payable, helping to avoid undue hardship.

If a taxpayer has unavoidable major expenses compared to other taxpayers with similar income, assets, or family status, they can apply to reduce their income tax. To do this, you must enter your exceptional expenses in the tax return.

However, only expenses that exceed a reasonable burden and are actually necessary are considered. The reasonable burden is determined by the taxpayer's income, family status, and number of children.

The percentage is between one and seven per cent of the taxable annual income. If your exceptional expenses exceed this percentage, you can claim the costs in full.

Exceptional expenses can include:

• Funeral costs,
• Care costs, or
• Medical expenses.

However, divorce costs have not been deductible since 2013 due to a change in the law!

In special cases, expenses for maintenance can be considered exceptional expenses. In this case, a reasonable burden is not applied.

The care allowance can be claimed by anyone caring for a close relative. This is an annual amount that is not dependent on a reasonable burden. On the individual pages of our tax return, you will find more detailed information on the respective exceptional expenses you can claim.

A distinction is made between general and specific exceptional expenses. General exceptional expenses, such as medical and funeral costs, only have a tax-reducing effect once the reasonable personal burden has been exceeded.

Specific exceptional expenses are recognised in full, but usually up to fixed maximum amounts. These include, for example, maintenance for a dependent person or the external accommodation of an adult child for education.