Are maintenance payments classified as special expenses or exceptional costs?

Maintenance payments to your divorced or permanently separated spouse can be deducted either as special expenses or as extraordinary burdens. This decision applies to the entire maintenance payment, meaning you cannot declare part as special expenses and another part as extraordinary burdens. Which option is more favourable depends on the individual case.

Special expenses:

For higher maintenance payments, it is often advisable to deduct them as special expenses, as the tax savings can be higher. The person obliged to pay maintenance can deduct up to 13.805 Euro annually plus the health and nursing care insurance contributions of the maintenance recipient. However, the recipient must agree and declare the payments as income. The agreement is given via the "Form U".

Extraordinary burdens:

The deduction as an extraordinary burden is simpler, as no consent from the ex-partner is required. Here you can deduct up to 12.096 Euro annually plus the health and nursing care insurance contributions paid for the maintenance recipient. Note: The own income and earnings of the ex-partner receiving maintenance (e.g. salary, pension, unemployment benefit) reduce the deductible amount if they exceed 624 Euro annually.

Joint assessment in the year of separation:

In the year of separation, joint assessment is often more tax-efficient. In this case, maintenance payments cannot be deducted in that year.