I. Extraordinary burdens with deductibles
What are the most common examples for extraordinary burdens with deductibles?
Medical expenses
In order for medical expenses to be recognised as an extraordinary burden, it must be proven that an illness exists, that the treatment is directly linked to the disease and that it 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- or accident-insurance scheme, by a voluntary supplementary health- or 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 the 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 their income would be less than the tax-exempt minimum subsistence level totalling €13,308.
The minimum subsistence level for tax purposes is based on the income specified in section 33(1) Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz) (€13,308 per year), increased by the following benefits:
- Maternity allowance pursuant to section 3(1)(4)(a) Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz)
- The unemployment benefits and poverty-relief assistance as well as compensation pursuant to section 3(1)(5)(a) Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz)
- Incomes from benefited foreign employment pursuant to section 3(1)(10) Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz)
- Income from development-aid activities pursuant to section 3(1)(11)(b) Austrian Income Tax Act 1988 (EStG, Einkommensteuergesetz)
- Income from private property sales, even if these are tax-exempt pursuant to section 30(2) Austrian Income Tax Act 1988
- Income from capital assets
- Income that is tax-exempt on the basis of intergovernmental or other international agreements
Medical expenses (dietary costs) with separate lump sums
Medical expenses may also include the costs of special diets, prescribed by a doctor due to an illness. They may be determined on the basis of the actually incurred costs, by way of receipts, or lump sums for the nutrition that the sick person requires:
| Condition | Monthly tax-exempt amount |
|---|---|
| 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 (see "Extraordinary burdens resulting from disabilities", page 115).
Health-resort costs
Costs of health resorts may be claimed as extraordinary burdens only if the stay at a health resort is directly linked to a condition or required for medical reasons. The prerequisites can be proven by a medical expert opinion issued before the start of the treatment 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
Expense reimbursements 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 health-resort treatments due to a disability (25% or more) are considered to be costs of therapeutic treatment and must be recognised without deductible.
Costs of a retirement or nursing home, or of domestic care
The costs of accommodation in a nursing home are only regarded as an extraordinary burden if they are due to illness 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 care allowance (starting at class 1), special nursing care must in any case be assumed to be needed. When receiving nursing care at home, the respective expenses are deductible as extraordinary burdens, if the disabled person needs special care or attendance—as in the case of care provided at a nursing home. All expenses in connection with the attendance and care provided (e.g. the cost of nursing staff and expenses of a nursing-staff provider) may be claimed. These expenses are to be reduced by the tax-exempt subsidies received (e.g. nursing care allowance, contribution to care costs).
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. If there is a specific relationship with a transfer of assets (e.g. transfer of a house), no extraordinary burden is assumed. A reduction must be made for cost reimbursements, the deductible and household savings.
Note
In cases of a disability (minimum level: 25%), the expenses of the person requiring nursing care are accepted without deductible. Upon granting the nursing care allowance, a level of disability of at least 25% is assumed (without proof). If the costs are borne by family members who are required to pay support, a deductible must generally be deducted.
Funeral expenses
Funeral costs including the gravestone must primarily be met from the estate (assets) and represent an extraordinary burden only insofar as they exceed the available assets. Funeral costs (incl. the gravestone) can constitute an extraordinary burden up to a total value of €20,000. The costs for flowers and wreaths, for hosting the funeral attendants to a locally customary funeral meal, as well as for condolence cards are part of the funeral costs. The costs of funeral attire and grave maintenance are not tax-deductible. In order to offset higher costs, proof of necessity must be provided (e.g. special transfer costs for the deceased or special regulations for the design of the gravestone).
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 an extraordinary burden (maximum deductible costs for funeral and grave marker minus estate assets).
Childcare costs: Single parents
The costs of a kindergarten, a childminder, a boarding school, a day-care centre, a nanny or a domestic help are considered to be an extraordinary burden if they are required due to the professional activity of a single parent.