In-home care: Why a tax return is worthwhile
Care at home often begins quietly: first small aids, then fixed routines – and eventually a responsibility that shapes everyday life. In addition to the emotional and organizational burden, there is often a point that surprises many: the costs. Journeys, household help, care organization – even if the long-term care insurance provides support, a noticeable personal contribution often remains.
This is exactly where it pays to look at the tax return. Because the state recognizes unpaid care in the home environment for tax purposes. Anyone who cares for a close person without remuneration can, under certain conditions, claim the care lump sum and thus reduce their income tax.
Care lump sum explained: Relief for caring relatives
The care lump sum is an annual tax relief for individuals who provide gratuitous support to a person in need of care. It is claimed via the income tax return and is based on § 33b paragraph 6 EStG (German Income Tax Act).
Important: This is not a payout, but a tax relief through income tax. This can significantly reduce the tax burden – especially when home care determines a relevant part of life for months on end.
Requirements: When you can claim the caregiver lump sum
For the caregiver's lump sum to be applicable, certain conditions must be met. The key ones are:
- The cared-for person has at least care level 2 or is considered helpless (e.g., mark H on their disability ID card).
- The care primarily takes place in a home environment – either in the cared-for person's household or in yours.
- You receive no remuneration for your care services. This means: The caregiver's lump sum is intended for unpaid care.
This last condition, in particular, is often overlooked – and leads to uncertainties when care benefits are involved.
Deducting the Care Flat Rate or Actual Costs – Which Makes More Sense?
In addition to the care allowance, under certain conditions, it is possible to claim actual care costs as extraordinary expenses for tax purposes. This can be beneficial if your actual expenses were significantly higher than the respective lump sum.
Important to know: For extraordinary expenses, the tax office considers a so-called reasonable personal burden, which depends on income and the number of children. This means that not all costs automatically lead to a tax reduction. Only the amount exceeding this personal burden will be considered.
You cannot use both options simultaneously – either the lump sum or the actual costs. Therefore, it is worthwhile to check before submitting your tax return which option is more favorable for your personal situation. Tax advice can assist with this.
Home care: What is still tax deductible
Care often means more than direct support with personal hygiene or mobility. It also includes organizational tasks, accompanying to doctor's appointments, or regular everyday support. Furthermore, other tax options may apply under certain circumstances.
For example, household-related services can be deducted if you employ a domestic helper in the household of the person in need of care. These costs are not considered extraordinary expenses but fall under a separate tax category.
For additional safety in everyday life, the Gardia emergency wristband with automatic fall detection can be a valuable addition. It relieves the burden on caregivers because help can be quickly alerted in an emergency – even when no one is present. At the same time, it gives the person in need of care more independence and a reassuring feeling of security in their own home. Starting from care level 1, the monthly costs for the PflegePlus subscription can be covered.
It is also important: If the care level is changed or newly determined during the year, the highest care level that existed in the relevant calendar year counts for the care lump sum. This regulation is stipulated in § 33b paragraph 6 of the German Income Tax Act (EStG).
Care Flat Rate vs. Care Allowance: Often Confused
The care allowance is a tax relief for family caregivers who provide unpaid support. It is claimed through the tax return.
Care allowance, on the other hand, is a monthly benefit from the long-term care insurance fund to the person in need of care, if they are cared for at home.
Important: If the person in need of care passes on the care allowance to you as remuneration, the care allowance is generally not possible. An exception applies if you can demonstrably prove that the money was spent entirely on care.
How high is the care lump sum according to care level
The amount depends on the care level (or "H" disability code) of the person you are caring for. It does not matter how high your actual costs were – proof of individual expenses is not required for the flat-rate amount.
Care Level 2: €600 annually
Care Level 3: €1,100 annually
Care Level 4: €1,800 annually
Care Level 5: €1,800 annually
"H" disability code: €1,800 annually
If you share the care with others, the amount is divided equally. If you care for several people free of charge, you can use the flat-rate amount multiple times – even if the people live in the same household.
Application: Where to enter the amount in the tax return
The care lump sum is claimed in the tax return – in Schedule "Extraordinary Burdens", lines 11 to 16.
There you enter, among other things:
- who provided care (you alone or jointly assessed)
- whether other people were involved in the care
- name and address of the person cared for and, if applicable, relationship
- tax ID of the person cared for
- care level or disability code "H"
Usually, the care level notification is sufficient as proof. An application to the long-term care insurance is not necessary, as this is a tax reduction.
Safety that simplifies care
The Gardia emergency wristband with automatic fall detection provides discreet and reliable support in everyday care. For more freedom for seniors and more peace of mind for relatives.
Four Facts About the Care Allowance That Many Don't Know
Those who care for relatives at home often think first about organizational and emotional challenges. Tax relief such as the caregiver lump sum (Pflegepauschbetrag), however, is often overlooked – or misjudged. Yet there are some important details that many relatives are not aware of.
1) Outpatient support does not automatically exclude the lump sum
Many assume that the caregiver lump sum is only possible if care is provided exclusively privately. This is not true. Even if an outpatient care service takes over certain tasks, the claim can remain – provided that you continue to provide a significant part of the care yourself and meet the legal requirements. Professional support is therefore not an obstacle, but can be a useful addition.
2) Day or night care is not an exclusion criterion
If day care or night care is also utilized, this does not automatically mean the loss of the claim. The decisive factor is that the person in need of care continues to be predominantly cared for at home and that you, as a relative, make a relevant contribution. This combination – home care plus temporary relief – is common in practice and generally possible for tax purposes.
3) There is no fixed minimum number of hours – but the care must be noticeable
The law does not specify a concrete number of hours per week or month. Nevertheless, the care must go beyond usual family assistance. It is therefore not enough to occasionally do shopping or run errands. The proportion provided should be recognizable and relevant. Courts have clarified that the care must constitute a significant part of the total care.
4) In the case of institutional care, the lump sum is generally excluded
If the person in need of care lives permanently in a nursing home or an inpatient facility, there is usually no entitlement to the caregiver lump sum. Even regular visits or organizational support are generally considered family assistance for tax purposes – not home care in the sense of the law.
These four points show: The regulations are more nuanced than many think. Those who inform themselves can take advantage of tax benefits – without foregoing necessary support.
Conclusion: Tax relief – making everyday life clearer
Home care is an enormous responsibility. The care lump sum is one way to at least partially offset this burden for tax purposes – it's straightforward and can be used annually if the conditions are met.
Those who organize care should therefore not only keep an eye on appointments and assistance but also utilize financial relief and create clear emergency procedures. Because stability is not created by a single step – but by a system that supports daily life.
FAQ/Frequently asked questions
Who can claim the care lump sum?
Taxpayers who predominantly provide gratuitous care to a person in need of care with at least care level 2 (or special designation H) in their home environment.
Will the amount be paid out?
No. The nursing lump sum is a tax reduction and reduces taxable income.
What applies if the care level changes during the year?
The highest care level that existed in the relevant calendar year counts.
Can I deduct actual costs instead of a lump sum?
Under certain circumstances, yes – then the actual costs must be proven. Both parallel is not possible.
Can I get the lump-sum allowance if a nursing service helps out?
Yes, provided the other requirements are met.
"For a long time, I didn't even know this tax option existed. Caring for my mother was a given for us – but also financially straining. When I learned about the caregiver's lump-sum allowance, it was a real relief. And since my mother has also been wearing the Gardia emergency call bracelet, I feel more secure in everyday life. It eases the burden on both of us – she remains independent, and I have greater peace of mind."
