Welche Regelung gilt, wenn Verheiratete einen gemeinsamen Haushalt gründen oder beenden?
If two previously single taxpayers with their own households establish a joint household during the tax assessment period, or if the joint household of two taxpayers is dissolved during the tax assessment period and two separate households are established again, each taxpayer can claim the full maximum amounts in this tax assessment period, provided the other conditions are met.
This applies regardless of whether the marriage or civil partnership, separation, divorce, or dissolution of the civil partnership also takes place in the year the household is established or dissolved. In principle, each taxpayer can claim their actual expenses up to the maximum amount. It does not matter in which of the two households the expenses were incurred during this tax assessment period.
To claim the full maximum amount per taxpayer, it is essential that the respective taxpayer maintained a sole household for at least part of the tax assessment period.
If a joint household is dissolved and a joint household with another person is established immediately afterwards, the taxpayer who lived in joint households throughout the year can only claim their actual expenses up to half of the maximum deduction amount.
Note
The BMF letter dated 09.11.2016 explicitly regulates the increase in maximum amounts for single persons in the year of marriage.
(2021): Welche Regelung gilt, wenn Verheiratete einen gemeinsamen Haushalt gründen oder beenden?
What are household-related services?
Household-related service is a term from income tax law. The expenses for such a service can lead to a tax reduction. The legal basis can be found in § 35a EStG.
A distinction is made between household-related employment, household-related services and craftsmen's services.
Depending on the classification of the service, different maximum amounts apply for consideration.
Household-related employment
Household-related employment exists if a person who is not a member of the household carries out an activity in a private household that would usually be done by household members, such as shopping, cooking, baking, sewing, washing, cleaning, caring for children and the elderly, gardening.
Employment in a private household subject to social insurance contributions always exists if
- the wages from the employment exceed 450.00 Euro per month, or
- several mini-jobs together exceed the limit of 450.00 Euro per month.
Activities as a chauffeur, secretary or companion are not eligible.
Household-related services
Household-related services must have been carried out by an independent service provider or service agency. Eligible services include, for example:
- cleaning the flat, window cleaning, cleaning the stairwell and other communal areas,
- garden maintenance (e.g. mowing the lawn, trimming hedges),
- services for moves by private individuals (minus reimbursements from third parties).
Craftsmen's services
In the context of craftsmen's services, all expenses for renovation, maintenance and modernisation measures for the home used for own residential purposes (condominium, house, rented flat) are eligible. These include, for example:
- work on interior and exterior walls,
- work on the roof, facade, garages, etc.,
- repairs or replacement work on windows and doors,
- painting, repairs and replacement work on doors, windows (inside and outside), fitted cupboards, fitted kitchens, radiators and pipes,
- repairs and replacement work on floor coverings (e.g. carpets, parquet, tiles),
- repairs, maintenance or replacement work on heating systems, electrical, gas and water installations,
- modernisation work in the bathroom,
- repairs and maintenance work on items in the taxpayer's household (e.g. washing machine, dishwasher, cooker, television, personal computer),
- garden design measures (e.g. paving work, new garden layout),
- paving work on the residential property,
- inspection work (e.g. chimney sweep, lightning protection, fire extinguishers and alarms).
(2021): What are household-related services?
How much tax can I save through household-related services and tradesmen's bills?
Depending on the type of employment and work, household-related services are subsidised differently in the tax return. The expenses can be taken into account for tax reduction as follows, depending on their type:
20 percent, maximum 510 Euro
- for household help in marginal employment (mini-job),
20 percent, maximum 4.000 Euro
- for household help in employment subject to social insurance,
- for care and support services (also in nursing homes)
- for household-related services in self-employment.
20 percent, maximum 1.200 Euro
- for craftsmen's services, but only wages and travel costs plus VAT, not material costs.
Your expenses for household help, household-related services and craftsmen's services are deducted directly from the tax liability at 20 percent.
If you pay no or very little income tax, unfortunately you have no possibility of tax reduction through household-related services or craftsmen's services.
Tip
The maximum amounts for the individual services are not reduced pro rata if the service is not provided for the whole year. For example, if you employed a cleaner for only a few months of the year, the wages paid will still be deducted from the tax liability at 20 percent, up to the maximum amount.
On the other hand, you cannot claim the expenses for household-related services more than once. Exception: You share the cost of caring for a person with others. However, you cannot claim double the maximum amount for two cleaners, even if you have several households in different flats.
The tax office counts several households in different flats as one household. If you and your spouse choose individual assessment, each partner is entitled to half the maximum amount for the respective household-related service. However, you can also apply for a different proportional allocation. Even if you are unmarried and living together, you can only claim half the maximum amount for yourself. In total, the maximum amount for the tax deduction is therefore only available once per household.
Example
Mr Schmitt has his house renovated 2021 (cost: 6.000 Euro incl. VAT), employs a cleaner in marginal employment (4.800 Euro) and has a gardener (1.200 Euro incl. VAT) as well as a care service for his mother, who lives with him in the household (4.000 Euro incl. VAT). Through these expenses, Mr Schmitt saves income tax as follows:
- Deduction for renovation (20 percent of 6.000 Euro, max. 1.200 Euro): 1.200 Euro
- Deduction for cleaner (20 percent of 4.800 Euro, max. 510 Euro): + 510 Euro
- Deduction for gardener and care service (20 percent of 5.200 Euro, max. 4.000 Euro): + 1.040 Euro
Total tax deduction 2.750 Euro
This amount is deducted from the income tax. Mr Schmitt may receive a refund from the tax office if his pre-paid wage or income tax is higher.
(2021): How much tax can I save through household-related services and tradesmen's bills?
Which expenses are eligible?
Eligible expenses include gross wages or earnings (for "mini-jobs") and the social security contributions paid by the employer, wage tax including the solidarity surcharge and church tax, accident insurance contributions, and levies under the Expense Reimbursement Act (U 1 and U 2).
(2021): Which expenses are eligible?
Requirements for all tax reductions
The service must have been provided in the taxpayer's household. This condition is not met, for example, in the case of
- care and support for sick, elderly and dependent persons in a day care facility,
- repair of household items at the repair company's premises,
- waste collection (the processing or disposal of waste takes place outside the household)
The household must be located in the European Union or the European Economic Area. If the taxpayer's expenses relate to several households (e.g. main residence and holiday home), the maximum amount is deductible only once in total.
Not eligible are expenses that have already been taken into account for tax reduction under other provisions of the Income Tax Act as business expenses, income-related expenses, special expenses or extraordinary burdens.
Special feature for apartment owners: Apartment owners who use their apartment themselves receive the tax reduction even if the community or the administrator is the employer or client. This is done proportionally according to their co-ownership share.
(2021): Requirements for all tax reductions
What evidence is required?
To receive the tax reduction, you must observe one condition:
You must obtain an invoice from the service provider as proof of expenditure, and you may only pay this invoice by bank transfer to their account. Ensure that the invoice separately lists labour and material costs. Only labour costs, as well as machine and travel costs including the VAT, are eligible for tax relief. However, VAT does not need to be shown separately; you may add it to the labour costs.
It is not necessary to attach the bank statement to the tax return. However, in case of doubt, the tax officer may request it. Amounts paid by standing order, direct debit, or online banking are recognised in conjunction with the bank statement. Cash payments are not recognised.
The condition of bank transfer still applies. Invoices paid in cash will not be recognised.
Household-related services also include home care and support for persons in need of care by mobile care services or self-employed carers. Since 2009, it is no longer necessary to prove the need for care and a care level (until 2016) or a care grade (from 2017).
Fehlende Bescheinigung 2021: Kein Problem!
If you do not yet have a current service charge statement or a separate certificate according to § 35 a EStG for 2021 from your property management, this is not a problem. It is permissible to claim the total expenses for the tax year in which the statement is received by the tenant. You therefore take the most recent service charge statement you have – presumably from 2020 – and claim these costs in the tax year 2021. All tenants and property owners who have not yet received the current certificate according to § 35 a EStG for 2021 can proceed in this way!
All private individuals who have commissioned tradesmen or service providers claim the expenses in the tax year in which they paid the corresponding invoice themselves.
Note: In 2019, the Federal Fiscal Court unfortunately ruled against the generous stance of the tax authorities that the tax reduction according to § 35a EStG for household-related services is only granted for expenses incurred by a taxpayer for their own accommodation in a home or for their own care. However, the tax benefit is excluded for expenses incurred for another person, i.e. if children cover the costs for their parents (BFH ruling of 03.04.2019, VI R 19/17).
The tax authorities are now applying the ruling!
Currently, the Berlin-Brandenburg Fiscal Court has also dealt with the assumption of care costs for a parent. According to this, § 35a EStG favours – if at all – only expenses for the outpatient care of relatives in the taxpayer's own household (i.e. the carer's), but not for the outpatient care of relatives in their household (ruling of 11.12.2019, 3 K 3210/19). HOWEVER: An appeal was explicitly allowed, which has since been filed (Ref. VI R 2/20). The BFH will therefore have to address the issue of the assumption of care costs again.
(2021): What evidence is required?
Can I also claim tax relief for assisting a person in need of care?
Jein. For the care of a person in need of care in your household, you can claim 20 percent of the costs, up to a maximum of 4,000 Euro (§ 35a EStg). You can deduct the care costs if the person being cared for is yourself or your spouse. In the past, the tax authorities also allowed the deduction of costs for the care of parents, even if they did not belong to your household. However, the Federal Fiscal Court (BFH) has rejected this (BFH ruling of 03.04.2019, VI R 19/17).
Eligible services include basic care, i.e. direct personal care (body care, nutrition, and mobility) or supervision. The tax benefit is only granted if the care and supervision are carried out in the household of the carer or the person being cared for. This can also be a household in a residential home or nursing home. The tax benefit is household-related. So if two people in need of care are looked after in one household, the tax benefit is only granted once. Care and support services also exceptionally include personal services, provided they are listed in the care insurance service catalogue, e.g. hairdressing, cosmetics, manicure, foot care.
Tip
Depending on the amount of your costs, it may be worthwhile to waive the care allowance. This is always worthwhile if 20 percent of your care expenses exceed this allowance. In this way, you can potentially deduct up to 4,000 Euro of care costs directly from your tax liability.
Current The Berlin-Brandenburg Fiscal Court has also dealt with the issue of covering care costs for a parent. According to this, § 35a EStG favours - if at all - only expenses for the outpatient care of relatives in the taxpayer's own household (i.e. the carer's), not for the outpatient care of relatives in their household (ruling of 11.12.2019, 3 K 3210/19). HOWEVER: An appeal was explicitly allowed, which has since been filed (Az. VI R 2/20). The BFH will therefore have to address the issue of covering care costs again.
From 2021, the care allowance for home care with care level 4 or 5 will be doubled, and a new allowance will be introduced for care levels 2 and 3. The allowance amounts to
- for care level 2: 600 Euro
- for care level 3: 1.100 Euro
- for care level 4 or 5 or helplessness: 1.800 Euro
Tip
We recommend initially claiming the relevant costs for the outpatient care of parents and lodging an appeal against any negative decisions. Request that your own proceedings be suspended until the senior tax judges have made a decision in the current case. Regardless of this, it should be checked whether the costs can be claimed as extraordinary expenses if not as household-related services. However, you can only deduct the expenses incurred if the person in need of care cannot pay the care costs themselves.
(2021): Can I also claim tax relief for assisting a person in need of care?
