SteuerGo FAQs

(2023) When do I have my own household?

For the tax recognition of maintaining a second household in Germany, certain conditions must be met:

1. You must have your own household at your place of origin and your main place of residence must be there. Your own household means that you own or rent a property that you use for your personal needs.
2. For single individuals, it is important to contribute financially to the main household. This means you must cover more than ten percent of the monthly running costs of the household. The financial contribution to the living costs in the main residence is usually strictly checked (§ 9 Abs. 1 Nr. 5 EStG).
3. Married individuals often have less difficulty claiming a second household. Usually, the family continues to live at their place of origin and uses their own self-contained flat. The financial contribution is rarely questioned in these cases.

In 2019, the Finance Court in Lower Saxony ruled that the financial contribution to the main household - in this case, the parental household - can be made in various ways. This can be through direct payments to the parents or indirectly through the purchase of household items, repair or renovation costs, or contributions to acquisition or construction costs. Regular payments are not mandatory, and one-off payments are accepted.

Recently, the Federal Finance Court confirmed this ruling and rejected the strict requirements of the tax authorities.

A case study:

An employee rented a flat at the place of work but also lived in a non-self-contained room in his parents' house. He stated that he contributed a total of 3,160.47 Euro to the household costs in 2015. This included grocery shopping and payments for utility costs and new windows. The tax office did not accept this as sufficient proof of financial contribution, rejected the deduction of costs for the second household, and the employee had to go to court. The court ruled in favour of the employee, and the judgement was upheld.

Reasoning:

To prove your own household, you must contribute financially to the costs of the main household. This includes costs such as rent, operating costs, household items, renovations, and other living expenses. Other expenses such as clothing, holidays, or leisure activities are not included.

There is no fixed minimum limit for the financial contribution, and it does not have to be made monthly. One-off payments, even at the end of the year, are accepted. However, the financial contribution should not be insufficient.

To assess the sufficient financial contribution, the actual costs of the household and living expenses in the year are used. These must be proven. Regular fixed costs can be more easily proven, while variable costs such as groceries can be based on experience values.

The amount of the sufficient financial contribution depends on individual circumstances.

Tips:

• If the tax office rejects the second household due to a lack of cost sharing, you can appeal and refer to the Federal Finance Court's decision. Monthly transfers can avoid conflicts.
• Adhere to the ten percent limit of the tax authorities by covering more than ten percent of the monthly regular running costs of the household to avoid problems.
• Note that the Federal Finance Court's ruling is not transferable to cases where younger children go home at weekends and only use their childhood room.