Which pension expenses can I deduct in the tax return?
Pension expenses are expenditures with which you provide for your future. Pension expenses are divided into health and nursing care insurance, retirement provision, and other insurance.
Retirement pension expenses mainly include contributions to the statutory pension insurance, a Riester pension, or a private Rürup pension (funded pension). Contributions to occupational pension schemes are also included if they provide benefits comparable to statutory pension insurance. This mainly applies to employees and self-employed members of professional chambers, e.g. doctors, dentists, veterinarians, pharmacists, tax consultants, lawyers, auditors, notaries, architects, engineers.
There is a separate maximum amount for payments into a Riester contract. Therefore, you can claim contributions to the specially subsidised Riester pension separately. For this, there is the "Anlage AV", in which the Riester contributions must be entered. This must then be submitted to the tax office together with the provider's certificate.
Contributions to statutory and private basic health insurance as well as statutory nursing care insurance (i.e. social nursing care insurance and private compulsory nursing care insurance) are deductible as special expenses in their actual amount and unlimited.
Other pension expenses mainly include contributions to unemployment insurance, occupational disability, accident, and liability insurance, term life insurance, private health insurance (beyond basic cover), and private nursing care insurance. Capital life insurance and pension insurance with a capital option (considered at 88%) as well as pension insurance without a capital option concluded before 2005 are also included here.
Insurance that does not serve to provide for the future is not deductible as pension expenses. This includes, for example, property insurance, such as household or legal protection insurance or comprehensive car insurance.
Also not deductible as pension expenses are contributions to direct insurance, a pension fund, or a pension scheme if they are tax-advantaged. Insurance amounts and other pension expenses do not fall under the "special expenses allowance" because they are not unlimited deductible special expenses.
The maximum pension amount is usually already exhausted by health and nursing care insurance and retirement pension expenses. Therefore, other pension expenses (see above) often have no tax effect.
For this reason, it is advisable to claim occupational insurance not covered by the employer as income-related expenses. In practice, a deduction in Anlage N (section "Employees > Income-related expenses") is mainly possible for professional liability insurance and professional legal protection insurance.
Since accident insurance usually covers both private and occupational risks, the contributions are partly deductible as income-related expenses and partly as special expenses. Claim 50% of the contributions as income-related expenses and 50% as special expenses ("other insurance"). However, if you have a hazardous occupation and the occupational risk share is greater than 50%, you should have this certified by the insurance company. Claim the certified share as income-related expenses and attach the certificate to your tax return.
Which pension expenses can I deduct in the tax return?
Which health and nursing insurance contributions can I claim?
Sie können Ihre kompletten Kranken- und Pflegeversicherungsbeiträge für die sogenannte Basisabsicherung als Sonderausgaben in der Steuererklärung eintragen. Das Finanzamt zieht von den gezahlten Beiträgen zur gesetzlichen Krankenversicherung lediglich vier Prozent pauschal für Krankengeld ab.
Für Privatversicherte gilt: Kosten für Kranken- und Pflegeversicherung werden nur in Höhe des Basisbeitrags der privaten Krankenversicherung anerkannt. Wahlleistungen, wie Chefarztbehandlung oder Zwei-Bett-Zimmer im Krankenhaus, werden im Rahmen der "anderen Versicherungsbeiträge" berücksichtigt, sofern dafür noch Spielraum beim abzugsfähigen Höchstbetrag besteht.
Wenn Sie einen weitergehenden Vertrag haben, ermittelt die PKV den genauen Anteil der Basisabsicherung. Falls Sie nicht über den Höchstbetrag von 1.900 Euro (Selbständige 2.800 Euro) mit Ihren Beiträgen zur Krankenversicherung kommen, können Sie noch Beiträge für weitere Versicherungen geltend machen. Begünstigt sind beispielsweise Beiträge zur Arbeitslosenversicherung, zu einer zusätzlichen Kranken- oder Pflegeversicherung, zur privaten Erwerbs- oder Berufsunfähigkeitsversicherung, zu Unfall- oder Haftpflichtversicherungen oder zu Risikolebensversicherungen. Kapitallebens- und Rentenversicherungen können als Sonderausgaben berücksichtigt werden, wenn die Policen vor 2005 abgeschlossen wurden.
Ein Ehepaar zahlt im Jahr ohne Krankengeld insgesamt 4.600 Euro an Beiträgen für die Kranken- und Pflegeversicherung. Damit übersteigen die Beiträge die gemeinsame Höchstsumme von 3.800 Euro (zweimal 1.900 Euro). Dennoch sind sie in dieser Höhe als Sonderausgaben absetzbar, doch weitere Versicherungsbeiträge, wie Unfall- oder Kfz-Haftpflichtversicherung, können nun nicht mehr abgesetzt werden.
Da der allgemeine Beitragssatz bei gesetzlich Versicherten das Krankengeld mit absichert, werden die Beiträge pauschal um 4 % gekürzt. Die Kürzung erfolgt nur dann, wenn im Krankheitsfall ein Anspruch auf Krankengeld besteht. Die Kürzung wird vom Finanzamt vorgenommen. Bis 2014 erfolgte die Kürzung nicht vom einkommensunabhängigen Zusatzbeitrag. Seit 2015 gilt folgende Rechtslage: Der neu ausgestaltete kassenindividuelle einkommensabhängige Zusatzbeitrag wird nunmehr als originärer Bestandteil des Krankenversicherungsbeitrags gewertet und ist daher in die Bemessungsgrundlage für die Ermittlung des vierprozentigen Kürzungsbetrags einzubeziehen. Eine Differenzierung des Beitrags in einen Grundbeitrag und den Zusatzbeitrag erfolgt jetzt nicht mehr.
Which health and nursing insurance contributions can I claim?
Increased deduction for insurance premiums from 2010
Since 2010, you can enter the full health and nursing insurance contributions for basic cover as special expenses in your tax return. The tax office deducts only four per cent from the contributions paid to statutory health insurance.
However, for privately insured individuals: You can only fully deduct the health and nursing insurance contribution if you pay the basic tariff of private health insurance. Policyholders with a different private health insurance tariff can deduct contributions up to the "basic cover" amount for tax purposes. In this case, the private health insurance company determines the exact share. However, these contributions are only recognised for tax reduction if the deductible maximum amount for "other insurance" has not yet been exhausted.
For employees, civil servants, pensioners and their partners, this is 1.900 Euro, for self-employed persons 2.800 Euro.
An employee earns 1.500 Euro gross per month. He pays around 132 Euro per month, 1.584 Euro per year, for his statutory health and nursing insurance. The tax office deducts four per cent from this amount. Thus, it recognises 1.521 Euro as special expenses. The taxpayer has therefore not yet reached his maximum amount of 1.900 Euro.
He can now also claim expenses for unemployment, liability and other insurance up to the maximum amount of 1.900 Euro. To do this, he deducts the 1.531 Euro. For the employee, this means: He can enter a further 379 Euro in insurance contributions in the income tax return.
Increased deduction for insurance premiums from 2010
How are children's health insurance contributions taken into account?
Claim contributions to your child's health and nursing care insurance on your tax return as follows:
(1) You are entitled to child benefit, and you are the policyholder
The contributions to your child's health and nursing care insurance are deductible as special expenses for you. Enter the contributions for basic cover in the "Anlage Kind" (line 31). Contributions for optional benefits, foreign health insurance, etc. are deductible for you under "other insurance" and should be entered in the "Anlage Kind" (line 37).
(2) You are entitled to child benefit, and the child is the policyholder
A special legal regulation applies here: If you pay the health insurance contributions for a dependent child for whom you are entitled to child benefit, you can deduct the contributions as special expenses (§ 10 para. 1 no. 3 sentence 2 EStG). Enter the contributions paid in the "Anlage Kind" (line 31). Contributions for optional benefits, foreign health insurance, etc. are only deductible as special expenses for the policyholder - i.e. the child - under "other insurance" and must therefore be entered in their tax return in the "Anlage Vorsorgeaufwand" (line 36). These contribution shares cannot be deducted by the parents.
Note: According to a recent ruling by the Federal Fiscal Court, the tax deduction requires that the parents have actually paid or reimbursed the contributions to the child (BFH ruling of 13.3.2018, X R 25/15). However, this ruling is not recognised by the tax authorities, and a legal amendment has since provided clarification. The contributions to the child's (basic) health and nursing care insurance are deductible as special expenses, regardless of whether the parents financially cover the child's contributions as part of their maintenance obligation through cash or in-kind support. It is also irrelevant whether the child has their own income. However, the child must be entitled to maintenance. (§ 10 para. 1 no. 3 sentences 2 and 3 EStG, amended by the "Act on Further Tax Promotion of Electromobility and Amendment of Other Tax Regulations" of 12.12.2019).
(3) You are not entitled to child benefit, and you are the policyholder
If the child is insured with you, you can deduct the contributions you have paid as your special expenses (§ 10 para. 1 no. 3 EStG). Claim the expenses in the "Anlage Vorsorgeaufwand" (line 40 ff.).
(4) You are not entitled to child benefit, and the child is the policyholder
If the child is the policyholder and you pay the insurance contributions, you cannot deduct the expenses as special expenses. The above-mentioned special regulation does not apply here. However, you can claim the contributions paid for basic cover as extraordinary expenses under § 33a para. 1 EStG and enter them in the "Anlage Unterhalt". In general, maintenance payments are deductible up to a maximum amount of 11,784 Euro (2024). In this case, however, the maximum amount is increased by the health and nursing care insurance contributions paid. A reasonable burden is not taken into account.
How are children's health insurance contributions taken into account?
Can contributions to mutual support societies be deducted?
Many citizens have either statutory or private health insurance. An alternative form of coverage is membership in mutual benefit societies or solidarity communities, which have existed for almost 100 years. However, there are frequent disputes with the tax authorities over whether contributions to such societies can be deducted as special expenses. This is often rejected on the grounds that no legal entitlement to benefits is acquired, as confirmed by many tax courts.
However, in 2023, the Federal Fiscal Court (BFH) made an important decision. It overturned a ruling by the Hessian Finance Court and referred the case back for reconsideration. The BFH found that there might indeed be a legal entitlement that would allow the contributions to be deducted as special expenses (BFH ruling of 23.08.2023, X R 15/22). A similar case from the Münster Finance Court was also referred back for a new hearing (BFH court order of 23.08.2023, X R 21/22).
The decision of the Münster Finance Court has now been made (ruling of 01.03.2024, 11 K 820/19 E). It decided that contributions to health care at mutual benefit societies can be deducted as special expenses, as they provide a level of coverage equivalent to that of statutory and private health insurance. In addition, members have a legally binding entitlement to benefits in the event of illness. However, contributions to long-term care insurance remain non-deductible, as only statutory long-term care insurance is eligible.
Conclusion: Contributions to mutual benefit societies for health care can be deductible as special expenses under certain conditions, provided there is a legal entitlement to benefits. This does not apply to long-term care insurance.
Can contributions to mutual support societies be deducted?
How is my contribution to statutory health insurance calculated?
Calculation of contributions to statutory health insurance
The contribution to statutory health insurance (GKV) is based on the gross monthly salary. Employers and employees share the contribution, while non-working family members (spouse, children) are co-insured free of charge.
Contribution rates:
- General contribution rate: Applies to those insured with entitlement to sickness benefit, e.g. employees. Pensioners also pay this rate, even though they are not entitled to sickness benefit.
- Reduced contribution rate: Applies if there is no entitlement to sickness benefit, e.g. for students and self-employed persons.
Voluntarily insured persons can acquire entitlement to sickness benefit from the seventh week of illness onwards through the general contribution rate. Until the seventh week, loss of earnings must be covered privately or through an optional tariff.
Contribution rate and additional contribution:
Since 2015, the general contribution rate has been 14.6%, shared between employer and employee. In addition, the employee pays a fund-dependent additional contribution, which averages 1.7% in 2024.
Contribution assessment ceiling:
The insurance contribution is only calculated up to the contribution assessment ceiling, which is 62.100 Euro annually or 5.175 Euro monthly in 2024. Income above this limit is not subject to contributions.
Reduction of contributions:
As the general contribution rate covers sickness benefit, contributions are reduced by a flat rate of 4% if there is an entitlement to sickness benefit. The additional contribution is also included in the calculation of the reduction.
How is my contribution to statutory health insurance calculated?
Which health insurance subsidies do I need to declare?
If medical expenses or health insurance contributions are not paid from your own funds but are partially or fully covered by third parties, this must be indicated in the tax return. This includes, for example, tax-free employer contributions to health insurance for employees subject to social insurance (employer's share of health insurance). Also relevant are employer contributions for voluntarily insured persons, health insurance contributions for pensioners through the statutory pension insurance, benefit claims for civil servants and pensioners, and contributions from the artists' social insurance fund.
Up to what amount are health insurance contributions deductible?
Contributions to statutory and private basic health insurance as well as statutory nursing care insurance (i.e. social nursing care insurance and private compulsory nursing care insurance) are deductible as special expenses in the actual amount and without limit. Contributions and contribution shares to private health and nursing care insurance that go beyond basic cover can generally be deducted under "other insurance", but they usually have no effect there because the possible deduction limit has already been exhausted.
Which health insurance subsidies do I need to declare?
