SteuerGo FAQs

(2023) How is the reasonable burden calculated?

The reasonable burden depends on the amount of your income, the number of children, and your marital status. It is automatically calculated by the tax office.

Until May 2017, the tax offices calculated as follows, which later proved to be incorrect:
A reasonableness threshold is determined in three stages (Stage 1 up to 15,340 Euro, Stage 2 up to 51,130 Euro, Stage 3 over 51,130 Euro) based on a certain percentage of the "total income". This percentage is between 1 and 7%, depending on marital status and number of children. According to previous legal regulations, the total reasonable burden was determined by the higher percentage once the total income exceeded one of the above limits. The higher percentage was then applied to the "total income".

Mr Stenzel is married, has two children, and a total income of 60,000 Euro. For a spa treatment, he has to pay 4,000 Euro after reimbursement from the health insurance.

Deductible as extraordinary expenses: 4,000 Euro
The reasonable burden is: 4% of 60,000 Euro = 2,400 Euro
Tax reduction effect: 4,000 Euro - 2,400 Euro = 1,600 Euro

Since June 2017, a new multi-stage calculation method has applied for the calculation of the reasonable burden due to a new BFH ruling: Only the part of the total income that exceeds the respective stage limit is subject to the higher percentage. For example, the percentage for Stage 3 only applies to the portion of income exceeding 51,130 Euro. The corresponding reasonable burden is determined for each stage limit, and the amounts determined are then added together (BFH ruling of 19.1.2017, VI R 75/14).

Married couple with 2 children and a total income of 60,000 Euro. Medical expenses amount to 5,000 Euro.

Deductible as extraordinary expenses: 5,000 Euro
The reasonable burden is:

• up to 15,340 Euro: 2% 306.80 Euro
• up to 51,130 Euro: 3% 1,073.70 Euro
• up to 60,000 Euro: 4% 354.80 Euro

total: 1,735.30 Euro
Tax reduction effect: 5,000 Euro - 1,735 Euro = 3,265 Euro
Advantage over previous calculation: 665 Euro

Due to the step-by-step calculation method, there is - compared to the previous legal situation - a lower total reasonable burden, which is deducted from the claimed extraordinary expenses. As a result, this calculation can lead to a higher tax deduction of extraordinary expenses - and thus to a lower income tax. Although the new regulation is clearly advantageous for the taxpayer, it also leads to a complication in the calculation.

The Federal Ministry of Finance accepts the new BFH ruling of 19.1.2017 (VI R 75/14) - from 1.6.2017 in all still open tax cases. The change has now been taken into account in the automated issuance of income tax assessments, and the assessments for previous years have also been largely amended, as far as procedurally possible.