Can I claim tax deductions for donations?
June 20, 2022 | 50,00 EUR | answered by Lina Walter
Dear tax consultant,
My name is Theodor Hahn and I have a question regarding gift tax. Some time ago, my parents started giving me money regularly to financially support me. Now I am wondering if I can claim these gifts for tax purposes.
My parents transfer a certain amount of money to my account every month to help me cover my living expenses. These gifts are a great help to me as I am currently not in a good financial situation. However, I am worried about whether I need to declare the gifts in my tax return and if I might have to pay taxes as a result.
I am not sure how gifts are treated for tax purposes and if there are any tax consequences for me as the recipient. I would like to know if I need to include the gifts in my tax return and if I might have to pay taxes as a result. Are there ways to claim the gifts for tax purposes or are there any specific rules I should be aware of?
I would greatly appreciate your help and advice on this matter. Thank you in advance.
Yours sincerely,
Theodor Hahn
Dear Mr. Hahn,
Thank you for your question regarding gift tax. It is understandable that you are concerned about how the regular gifts from your parents are treated for tax purposes and whether you may have to pay taxes.
In Germany, gifts are subject to gift tax, which is levied by the tax office. It is important to note that gifts up to a certain tax-free allowance are exempt from tax. The allowance depends, among other things, on the relationship between the donor and the recipient. For example, the allowance for children is 400,000 euros every 10 years.
In your case, where your parents regularly transfer money to you to cover your living expenses, it constitutes a gift. These gifts should be reported to the tax office if they exceed the tax-free allowance. If the gifts do not exceed the allowance, they are tax-free and do not need to be reported in the tax return.
However, it is important that you document the gifts and can prove that they are gifts from your parents. If you are unsure whether the gifts exceed the allowance, I recommend consulting a tax advisor who can assess your individual situation.
There is no direct way to claim tax deductions for gifts. However, you could declare the gifts as support when calculating your income to potentially gain tax benefits.
In conclusion, gifts up to the tax-free allowance are tax-free and do not need to be reported in the tax return. If the gifts exceed the allowance, you should report them to the tax office. If you are unsure, I recommend seeking individual advice from a tax advisor.
I hope this information is helpful to you. If you have any further questions, please feel free to contact me.
Kind regards,
Lina Walter
