Deduct medical expenses from your taxes: This is how it works

When can I deduct medical expenses for tax purposes?

Medical expenses are considered an extraordinary burden. This means that you can claim your special expenses in your income tax return if they exceed a certain amount. Where the limit lies varies from case to case. After all, not everyone has the same amount of money at their disposal: a childless management consultant can put away high special expenses better than a single mother with three children.

What is the reasonable burden for medical expenses?

How much the legislator expects you to pay in medical expenses depends on how much you earn, whether you are married and whether you have children. The following table gives a first impression:

Income includes not only wages, but also rental income or chapter income. In the case of married couples, the income of both partners are added together.

A calculation example:

Let's say you are a childless single and earn 65,000 euros. This means that you can "take" the first step of the table. 5% of 15,340 euros will be taken into account completely.

5 % of 15,340 euros = 767 euros

The second stage is also completely offset, but of course minus the income already recognized.

51,130 Euro - 15,340 Euro = 35,790 Euro

6 % of 35.790 Euro = 2.147,40 Euro

Now we have reached the third stage. The already calculated income will be deducted again.

65.000 Euro - 51.130 Euro = 13.870 Euro

7 % of 13.870 Euro = 970, 90 Euro

All together (767 Euro + 2.147,40 Euro + 970, 90 Euro) we now come to 3.885,30 Euro. From this amount, our childless single can therefore claim his medical expenses for tax purposes.

As you can see: a lot has to come together before you can count on a tax advantage. And even then, you have to bear all costs below the limit yourself. So if our childless single person has to pay an impressive 4,500 euros in medical expenses per year, he can only claim 614.70 euros as an extraordinary expense.

It is also important to know which services count as special expenses for tax purposes. This is because not all medical expenses are recognized.

It is important that your treatment is medically necessary and has been ordered by your treating physician or alternative practitioner. This necessity is only recognized if your therapist has a license.

In the case of disabilities, there are lump sums that you can claim in your tax return instead of the usual medical expenses.

You may also deduct medical expenses from your taxes if your child is ill and you still receive child benefits. It is always the time when you paid the bill that counts.

If your health insurance company has reimbursed at least parts of the expenses, you must deduct this part from the total amount.

When do I need a medical certificate?

A certificate from the public health officer or the medical service of the health insurance companies is required for:

• Psychotherapy
• Weight loss cures
• Massages
• baths & enemas
• medical aids, which are to be regarded as everyday objects
• some scientifically unrecognized treatments
• contributions to fitness studios for the relief of an illness and in case of training under the guidance of a doctor or alternative practitioner

The certificate should prove the medical necessity.

What can I not deduct from tax?

The following are not tax deductible:

• general expenses for preventive care, e.g. massages for relaxation
• in case of hospitalization: costs for magazines, telephone, etc.
• medicines not prescribed by the doctor
• Food supplements
• dental cleaning
• cosmetic surgery
• Miracle healers
• Occupational disease (counts as income-related expenses)

What other special expenses can I deduct from my taxes?

Remember that not only medical expenses, but also other special expenses are relevant for tax purposes.

Extraordinary expenses include, for example, costs incurred in a divorce or retraining due to incapacity for work. Home costs incurred by a relative in need of care are also included.

Which special expenses are only deductible from tax to a limited extent and which are unrestricted?

A distinction is made between special and general extraordinary expenses. The latter special expenses are deductible without limitation - you do not have to observe a cap when filing your tax return.

• General extraordinary burdens include all costs that arise in the context of a specific predicament such as illness or the need for care.
• In the case of care at home, a disability or the education of children, these are referred to as special extraordinary burdens. They are special expenses with limited deductibility. The deductibility is limited by a lump sum or maximum amount, but there is no reasonable personal burden.

Where do I enter the medical expenses in the tax return?

There is an annex for extraordinary expenses. There you enter all the items that you want to claim. Make sure that you have an invoice for each item so that you can show it if necessary.

You will have to collect several invoices before you reach the magic limit of the reasonable personal expenses. (If you manage it at all.) Many stay under their personal limit year after year and can't deduct lower amounts and medical expenses from their taxes.

You're wondering what else you can deduct from your taxes? The PKV for example! If you are self-employed, you also have some leeway with advance payments. You can also declare a home office in addition to many other special expenses in your private tax return