How much of the maintenance payments to former spouses can I deduct as special expenses?

How much of the maintenance payments to ex-spouses can I deduct as special expenses?

Maintenance payments to an ex-spouse can be deducted as special expenses, a process known as income splitting. This allows the payer to claim tax relief on their payments, while the recipient must declare these as other income.

To deduct the maintenance payments, the payer must apply for the deduction, and the recipient must agree and confirm that they will declare the payments for tax purposes. The payer can deduct up to 13,805 Euro annually as special expenses. This maximum amount applies even if maintenance payments are made for only part of the year.

Special conditions:

• If you have to support two ex-spouses, the maximum amount of 13,805 Euro applies twice.
• Additionally, contributions paid for the health and nursing care insurance of the maintenance recipient can be deducted. These contributions are not included in the maximum amount of 13,805 Euro and can be deducted additionally.

Mr X pays his ex-wife maintenance of 600 Euro per month. His taxable income (zvE) amounts to 40,000 Euro per year.

Income tax without income splitting according to basic rate including solidarity surcharge:

• Income: 40,000 Euro
• Income tax 2024: 7,495 Euro

Income tax with income splitting according to basic rate including solidarity surcharge:

• Income: 40,000 Euro
• less maintenance: 7,200 Euro
• zvE: 32,800 Euro
• Income tax 2024: 5,263 Euro

Tax saving: 7,495 Euro - 5,263 Euro = 2,232 Euro