Home Care and Tax Returns: What Expenses You Can Deduct
Anyone who provides or organizes care at home can often claim more on their tax return than many people think. This applies especially when a relative is cared for free of charge, an outpatient care service provides support, or personal costs for care and support have arisen. It is not only important which costs have been incurred, but above all where they are entered on the tax return. This is precisely where uncertainties often arise. This is because care costs can be treated differently depending on the type of support: as a care flat rate, as an extraordinary burden, or as household-related services.
This overview shows step by step what to enter where, which requirements apply, and which documents you should have ready.
Step 1: Determine which type of care costs you have
Before making any entries, you should distinguish which type of tax relief is involved. For home care, three cases are usually relevant:
1. Care lump sum
This is applicable if you personally, gratuitously, and at home care for a relative or a close person.
2. Extraordinary expenses
This includes self-paid costs, for example for:
- Care services
- Medical expenses
- Medical aids
- Nursing home costs
- Care-related renovations
3. Household-related services
This includes paid services in the household, for example:
- Outpatient nursing service
- Housekeeping help
- Daily care
- Certain support services at home
Only once it is clear which case applies to you can you correctly enter the costs.
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Step 2: Enter care lump sum
If you care for a relative free of charge, the carer's lump sum is often the easiest way.
Prerequisite
The person cared for must have at least care level 2 or be recognised as helpless.
This is the amount of the lump sum
- Care level 2: 600 Euros
- Care level 3: 1,100 Euros
- Care level 4 or 5: 1,800 Euros
Where is this entered?
The carer's lump sum is entered in the "Exceptional Burdens" annex. Lines 11 to 16 are relevant here.
The following information is requested there:
You usually have to state whether you cared for the person yourself or together with another person:
- how many other carers were involved
- name and address of the person cared for
- your relationship to this person
- the tax ID of the person cared for
- the care level or a characteristic such as H
If several people care for one person, the lump sum is divided. If, on the other hand, you care for several people, the lump sum can also be claimed multiple times.
Good documentation of all expenses significantly simplifies tax filing.
Step 3: Enter actual care costs as extraordinary expenses
If you do not use the care lump sum or had additional costs, certain expenses can be claimed as extraordinary burdens.
These include, for example:
- Costs for care services
- Costs for nursing homes
- Expenses for medical aids
- Medical expenses
- Care-related modifications
- Out-of-pocket expenses for care costs
Where is this entered?
These costs also belong in the Extraordinary Burdens Annex.
Depending on the type of expense, they are entered on page 2. There are sections for:
- Medical expenses
- Care costs
- Disability-related expenses
- Other extraordinary burdens
Important to note: Only the costs you have borne yourself count. Reimbursements from:
- Care insurance
- Health insurance
- Insurance
- Other payers
must be deducted. Furthermore, these expenses usually only have a tax effect if they exceed the reasonable burden.
Step 4: Claiming household-related services correctly
If an outpatient care service or a home help assistant provides support at home, this can also be tax-relevant as a household-related service.
Typical examples include:
- Cleaning assistance
- Everyday support
- Meal service
- In-home care
- Outpatient nursing services in the home environment
The advantage: Here, 20 percent of the costs can be directly deducted from the tax liability, up to a maximum of 4,000 euros per year.
What's important?
For the tax office to recognize the costs, you need:
- an invoice
- a cashless payment, e.g., a bank transfer
- a clear separation of eligible and non-eligible costs if multiple services were billed together
Where is this entered?
Depending on the tax software or form, these costs are recorded under household-related expenses. If the costs are also included in extraordinary expenses, it must be carefully determined which portion can be claimed where.
Step 5: Gather all documents
Good documentation is especially important when it comes to care costs. This not only helps with filling out forms but also if the tax office requests proof.
It is advisable to have the following documents ready:
- Care level assessment
- Invoices from nursing services
- Proof of transfers
- Receipts for medication and aids
- Proof of alterations
- Certificates of helplessness or disability
While you don't need to prove every single expense for the care lump sum, the prerequisites for care should be documentable.
Care can be made more flexible in everyday life if safety is also ensured on the go – for example, through solutions such as the Gardia emergency wristband, which quickly organizes help in an emergency.
6. Check whether multiple tax options are simultaneously possible
In many cases, there isn't just one tax option. This is particularly important because some costs can be treated differently.
For example:
-
Care lump sum for unpaid care
- additionally, household-related services for a paid care service
- additionally, extraordinary burdens for other self-paid costs
The crucial point is that the same costs are not claimed twice.
That is precisely why it is worthwhile to sort receipts neatly and clearly separate services from each other.
7. Avoid common mistakes
When it comes to care costs in tax declarations, the same mistakes often occur.
Common pitfalls include:
- Care lump sum and care allowance are confused
- Costs are claimed twice
- Invoices are missing
- Cash payments are used
- Reimbursements from health insurance funds are not deducted
- Care is provided, but does not meet the requirements for the lump sum
If you are unsure, a close look at Schedule Außergewöhnliche Belastungen (Exceptional Expenses) or the input masks of tax software can often help.
Overview of the Five Care Levels
The five care grades differ according to the degree of restricted independence. At the same time, they are also tax-relevant, as they determine whether and to what extent relief such as the care lump sum can be utilized.
Care Grade 1 – minor impairment
The need for support is still low, many tasks can be performed independently. Tax-wise: Generally no entitlement to the care lump sum, but individual costs may be considered as extraordinary burdens.
Care Grade 2 – significant impairment
Regular help in daily life becomes necessary, often supported by relatives.
Tax-wise: Entitlement to a €600 care lump sum is possible, in addition, certain care costs may be relevant.
Care Grade 3 – severe impairment
The need for support increases significantly, often with the involvement of nursing services. Tax-wise: €1,100 care lump sum, often also possible to combine with household-related services.
Care Grade 4 – very severe impairment
Extensive daily support is required, usually by relatives and professional care. Tax-wise: €1,800 care lump sum, often also higher deductible care costs.
Care Grade 5 – very severe impairment with special requirements
The highest level of care dependency, with comprehensive care in almost all areas of life.
Tax-wise: Also a €1,800 care lump sum, in addition often extensive extraordinary burdens are possible.
Conclusion
Home care can be considered for tax purposes in several ways. The most important thing is to choose the right category:
-
Care lump sum, if you provide care personally and free of charge
-
Extraordinary burdens, if you bear care costs yourself
-
Household-related services, if paid help is used at home
Those who proceed step by step, sort the documents, and clearly demonstrate the care level can correctly record many care costs in their tax return and better utilize tax relief.
FAQ/Frequently Asked Questions
Where do I enter the caregiver lump sum?
In the extraordinary expenses supplement, usually in lines 11 to 16.
Can I claim outpatient care services on my taxes?
Yes, often as a household-related service if the service was performed in the household.
Do I need receipts for the nursing lump sum?
Not for every single expense, but the requirements such as care level and care situation should be verifiable.
Can outpatient care services also be tax deductible?
Yes, costs for outpatient care services can be considered as household-related services or extraordinary expenses.
What distinguishes the Gardia emergency call bracelet from other solutions?
The Gardia emergency wristband is specifically designed for easy everyday use and functions independently of a smartphone. In addition to an emergency call at the touch of a button, it features automatic fall detection, which can automatically trigger an alarm in an emergency. At the same time, stored relatives or an emergency call center can be informed, so that help can be organized quickly – without the need for complicated technology.
"My mother always wanted to stay in her apartment – it had been her home for over forty years. For us as a family, that was a given, but also came with many worries. Suddenly you start thinking about things you never thought about before: What happens if she falls? Who will help her if no one is around? Home care doesn't just mean organization and responsibility, but also trust. Trust that help is available in an emergency and that you can still allow your parents a degree of independence despite everything."
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