I. Extraordinary burdens with deductibles
What are the most common examples for extraordinary burdens with deductibles?
Medical expenses
For recognition of medical expenses as extraordinary burdens, it is necessary that there is documentary evidence of a disease and the treatment is directly linked to the disease and constitutes a suitable measure to alleviate or cure the disease.
Medical expenses include, for example:
- Doctors' fees and hospital costs
- Costs of medication (fully deductible in any case when a doctor has made out a prescription; this also applies e.g. to homoeopathic medicines), prescription fees, contributions to treatment costs (including acupuncture and psychotherapy)
- Expenses for therapeutic aids (walkers, hearing aids, etc.)
- Costs of dentures or dental treatment (dental prostheses, crowns, bridges), costs of glasses or contact lenses
- Costs of childbirth
- Travel costs to a doctor or hospital (records of these trips must be kept e.g. using a vehicle log)
Any reimbursements of costs by the statutory health and accident insurance scheme, by a voluntary supplementary health and accident insurance policy or by another third party must be subtracted.
Medical expenses may also be incurred in connection with a disability (minimum of 25%), which may be claimed as costs of a therapeutic treatment without considering a deductible.
Absorption of costs incurred by low-income spouses/partners
As a rule, the diseased spouse/partner must bear his/her own medical expenses. If the medical expenses of a spouse/partner are covered, they constitute an extraordinary burden for the paying spouse/partner in the event that they would be such a burden on the income of the diseased spouse/partner that his/her income would be less than the tax-exempt subsistence minimum totalling €12,816.
Medical expenses (costs of diets) with separate lump sums
Medical expenses may also include the costs of dietary meals, prescribed by a physician due to an illness. They may be determined on the basis of the actually incurred costs by way of receipts, or lump sums for sick-care diets:
| Disease | Allowed monthly tax allowance |
|---|---|
| Diabetes | €70 |
| Tuberculosis | €70 |
| Coeliac disease | €70 |
| AIDS | €70 |
| Gall bladder condition | €51 |
| Liver condition | €51 |
| Kidney condition | €51 |
| Stomach disease or other internal disease | €42 |
In the case of multiple conditions, the higher lump-sum amount is to be taken into account.
Note If any of the aforementioned conditions results in a disability of at least 25%, and if the share of the disability due to the disease requiring the diet amounts to a minimum of 20%, the deductible does not need to be reduced.
Costs of cures
Costs of cures may be claimed as extraordinary burdens only if the stay at a health resort is directly linked to a disease or required for medical reasons. The prerequisites can be proven by a medical expert opinion issued before the start of the cure or evidence of a subsidy from the social insurance. These include:
- Costs of accommodation
- Costs of cures and medical care
- Travel costs to and from the health resort; in the case of persons requiring attendance and of children, also the expenses incurred for an accompanying person
Refunds and savings in household expenses (costs of living incurred at home) totalling €156.96 per month (= €5.23 per day) must be subtracted. Costs of cures due to a disability (25% or more) are considered to be costs of therapeutic treatment and must be recognised without deductible.
Cost of a retirement or nursing home, or for domestic care
The costs of accommodation in a nursing home are only regarded as an extraordinary burden if they are due to disease or the need for care or special attention. This also applies to the care ward in a home for the elderly or a nursing home of one's own choice, as well as to receiving care at home.
The need for special care or attendance of a disabled person must be evidenced by a medical expert opinion. When receiving the nursing allowance (starting with class 1), special nursing care must in any case be assumed to be needed.
If the income, including the nursing care allowance, of the person requiring care does not cover the costs, the persons required to provide support (e.g. a spouse, children) may claim their expenses as an extraordinary burden, if they are required to absorb the costs. Reduction by cost reimbursements, the deductibles and savings in household expenses must take place.
Note In cases of a disability (minimum level: 25%), the expenses of the person requiring nursing care are accepted without deductible.
Funeral expenses
Funeral costs including the tombstone must be primarily met from the estate (assets) and represent an extraordinary burden only insofar as they exceed this. Funeral costs (incl. grave marker) up to €20,000 constitute an extraordinary burden.
The costs for flowers and wreaths, for hosting the funeral attendants to a plain meal, as is customary in a place, as well for responding to expressions of condolence are part of the funeral costs. The cost of funeral clothing or the costs for tomb upkeep cannot be entered as deductible costs.
Example
The actual costs of a funeral incl. grave marker amount to €21,000. The assets of the deceased person's estate amount to €19,000. €1,000 can be deducted as extraordinary burdens (maximum deductible costs for funeral and grave marker minus estate assets).
Costs of childcare: Single parents
The costs of a kindergarten, a childminder, a boarding school, a day-care centre, a nanny or a domestic help are an extraordinary burden if they are required due to the professional activity of a single parent.