(2024) Can I claim my liability insurance through the tax return?

The legislator recognises liability insurance as a precautionary expense in the tax return. This supports citizens in insuring themselves against life's risks. In addition to liability insurance, you can also declare other insurance as precautionary measures in the tax return.

Contributions to private liability insurance can be deducted as other precautionary expenses. The contributions you enter in Lohnsteuer kompakt are transferred to line 48 of the "Anlage Vorsorgeaufwand".

You can also enter all other contributions for other precautionary expenses here, such as contributions to your motor vehicle liability insurance. In addition to private liability insurance, you can claim the following other liability insurance as precautionary expenses in your income tax return:

• Animal owner liability for dogs and horses
• Home and landowner liability
• Building owner liability
• Hunting liability
• Boat liability
• Water damage liability

It may be worthwhile for taxpayers to check whether their liability insurance is deductible. However, there is no guarantee that every citizen with liability insurance can benefit from tax advantages. Many already reach the maximum limit for precautionary expenses by declaring contributions to health insurance.

Even if it is not worthwhile or not possible to claim liability insurance for tax reasons due to exceeding maximum limits, this insurance cover should not be waived. The risk is too great that a moment of carelessness in everyday life could cause such significant damage that, without liability insurance, one would have to pay for it for a lifetime.