When do I have my own household?

When do I have my own household?

To have a second household recognised for tax purposes, certain conditions must be met:

1. Own household at home:

You must own or rent a property at your home location that you use for your personal needs. Your main place of residence must be there.

2. Financial contribution for single persons:

Single persons must financially contribute to the main household. This means you must cover more than ten per cent of the monthly running costs of the household (§ 9 Abs. 1 Nr. 5 EStG). The tax authorities scrutinise this strictly.

3. Married persons:

Married individuals often find it easier, as the family usually remains at home and financial contributions are rarely questioned. A separate, self-contained flat is often sufficient to justify the second household.

Financial contribution:

In 2019, the Lower Saxony Finance Court ruled that financial contributions to household costs can be made in various ways. This can be through direct payments, the purchase of household items, or costs for repairs and renovations. One-off payments are also possible. The Federal Finance Court confirmed this ruling and rejected the strict requirements of the tax authorities.

Case study:

An employee rented a flat at the work location but also lived in a room in his parents' house. In 2015, he contributed 3,160.47 Euro to household costs (food, utilities, window replacement). The tax office rejected this as proof of financial contribution. However, the court ruled in favour of the employee.

Reasoning:

• The financial contribution must relate to costs such as rent, operating costs, household items, and renovations. Other expenses such as holidays or leisure activities do not count.
• There is no fixed minimum limit, and contributions do not have to be made monthly. One-off payments are also permitted.
• To prove financial contribution, the actual costs of the household must be disclosed.

Tips:

• If the tax office rejects the second household due to a lack of cost contribution, you can appeal and refer to the Federal Finance Court ruling.
• To avoid conflicts, you should regularly cover more than ten per cent of the monthly household costs.
• The Federal Finance Court ruling does not apply to children who only go home at weekends and use their childhood bedroom.