What are extraordinary burdens in the income tax return?
February 9, 2022 | 40,00 EUR | answered by Ralf Otten
Dear tax consultant,
My name is Quentin Ahlert and I am currently dealing with my income tax return. In doing so, I came across the term "extraordinary expenses" and I am unsure of what exactly that means. I would like to learn more about it to ensure that I include all relevant information in my tax return.
Background information: Last year, I had some unforeseen expenses that I would like to claim as extraordinary expenses. These include high dental costs resulting from an accident, as well as costs for the care of my sick mother. Additionally, I had to carry out extensive renovation work in my apartment due to water damage.
My concern is that I am not sure if these expenses actually qualify as extraordinary expenses and how I should report them in my income tax return. Furthermore, I am unsure if there are specific requirements or evidence that I need to provide in order to claim these costs for tax purposes.
Could you please explain to me what exactly is meant by extraordinary expenses and which expenses can be considered in this context? I am also interested in how to correctly report these costs in my income tax return and if there are any specific evidence or receipts that I need for this.
Thank you in advance for your support and advice.
Sincerely,
Quentin Ahlert
Dear Mr. Ahlert,
Thank you for your inquiry regarding extraordinary expenses in your income tax return. I am happy to explain to you in detail what extraordinary expenses are and how you can correctly report them in your tax return.
Extraordinary expenses are costs that have arisen for you unavoidably and exceed your normal standard of living. These may include, for example, high dental costs due to an accident, expenses for the care of relatives, or renovation costs due to water damage. Under certain conditions, you can claim these expenses as extraordinary expenses for tax purposes.
In order for the costs to be recognized as extraordinary expenses, they must be exceptional, unavoidably incurred, and impair your economic capacity. Furthermore, the costs must be related to your personal standard of living. In your case, expenses such as dental costs due to an accident, care costs for your mother, and renovation costs due to water damage seem to be able to be considered as extraordinary expenses.
To report these costs in your income tax return, you must fill out the form "Attachment Extraordinary Expenses." There you can specify the various cost items and calculate the amount of extraordinary expenses accordingly. It is important that you collect and keep all relevant receipts and evidence for the costs you have reported, such as invoices, payment receipts, or medical certificates.
In case of doubt, it is advisable to seek support from a tax advisor to ensure that all relevant costs are reported correctly and that you do not miss out on any tax benefits. I hope this information helps you and wish you success with your income tax return.
Best regards,
Ralf Otten
