How can I claim my exceptional burdens on taxes?
November 28, 2022 | 45,00 EUR | answered by Ralf Otten
Dear tax advisor,
my name is Günther Albrecht and I have a question regarding the tax deductibility of my exceptional expenses. This year, I have had some unforeseen medical expenses that have put a significant strain on my financial situation. Among other things, I had to bear high costs for medications, medical treatments, and therapies.
I am worried that these expenses could further worsen my financial situation. Therefore, I would like to know how I can claim these exceptional expenses for tax purposes in order to at least recover some of the costs. I have already tried to inform myself about the different options for deducting exceptional expenses for tax purposes, but I am a bit overwhelmed by the complex tax regulations.
Could you please explain to me what conditions must be met in order for me to deduct my exceptional expenses for tax purposes? Are there specific limits or maximum amounts that I need to consider? And what documents do I need to correctly report the exceptional expenses in my income tax return?
I would greatly appreciate a detailed consultation on this topic, as I am unsure of the best course of action. Thank you in advance for your assistance.
Sincerely,
Günther Albrecht
Dear Mr. Albrecht,
Thank you for your inquiry regarding the tax deductibility of your extraordinary expenses. I am sorry to hear that you had unforeseen medical expenses that have burdened your financial situation. I would be happy to explain to you how you can claim these costs on your taxes to at least get some of it back.
In order to deduct extraordinary expenses on your taxes, certain conditions must be met. Generally, these include expenses that are significantly above average and arise out of necessity. This includes medical expenses such as medication, doctor visits, and therapies. It is important that the costs are necessary to treat or alleviate an illness.
However, there are also certain limits and maximum amounts that must be considered. Firstly, there is a reasonable burden threshold, which is calculated individually and varies depending on income. Only costs that exceed this threshold can be deducted on taxes. Additionally, there are maximum amounts for certain expenses, such as medical costs.
To correctly report the extraordinary expenses in your income tax return, you will need appropriate evidence. This includes invoices, receipts, medical prescriptions, or expert opinions that demonstrate the necessity of the expenses. Furthermore, you should keep and collect all receipts to be able to present them in case of an audit by the tax office.
It is advisable to seek advice from an experienced tax advisor in your case to ensure that you are utilizing all opportunities to deduct your extraordinary expenses on taxes. I am available for a detailed consultation and can assist you in correctly filling out your income tax return.
I hope that this information was helpful to you and I am available for any further questions.
Best regards,
Ralf Otten, Tax Advisor
