Can I also claim tax relief for assisting a person in need of care?
Tax reduction for care in the household (§ 35a EStG)
For the care of a person in your household, you can deduct 20% of the costs, up to a maximum of 4.000 Euro, directly from your tax (§ 35a EStG). This applies to the care of yourself or your spouse – but not for relatives who do not live in your household (BFH ruling of 03.04.2019, VI R 19/17).
Eligible services include basic care and support (e.g. personal hygiene, nutrition, mobility). Household-related services such as hairdressing or foot care are also deductible if they are included in the care insurance service catalogue. The key factor is that the care takes place in the household of the carer or the person being cared for – even in a nursing home. The tax reduction is household-based, so it is granted only once per household.
Care allowance or actual costs?
It may be worthwhile to claim the actual costs instead of the care allowance – especially if 20% of these costs exceed the allowance. Up to 4.000 Euro per year can be directly deducted from tax.
The care allowances:
- Care level 2: 600 Euro
- Care level 3: 1.100 Euro
- Care level 4, 5 or helplessness: 1.800 Euro
The allowance can only be claimed if the person in need of care cannot cover the care costs themselves.
Deductibility for care of relatives
According to previous case law, care costs for relatives were only deductible if they lived in the same household. This has changed due to a BFH ruling (12.04.2022, VI R 2/20): Even if children finance the outpatient care of their parents in the parents' household, they can deduct the costs – under the following conditions:
- It is outpatient care,
- The care contract was concluded by the payer (e.g. child) and obliges them personally to pay.
No deductibility for residential care
For residential care costs (e.g. nursing home accommodation), the following still applies: There is no tax deductibility if the children cover the costs for their parents. The BFH does not recognise this as an expense of their own (BFH ruling of 03.04.2019, VI R 19/17).
