Deductibility of the social security lump sum withheld from unemployment benefit money
July 26, 2011 | 30,00 EUR | answered by Dr. Yanqiong Bolik
At this address "Frag-eine.com" it was possible to deduce from an answer to a similar question by a tax advisor that "The withheld social security contributions are separately listed on the performance certificate for the tax office and can be taken into account as precautionary expenses for income tax".
My background:
In 2010, I received a higher severance payment for which no social security contributions were deducted. I also received monthly pension benefits for which only minimal social security contributions were paid, and finally I received unemployment benefits.
Now, when filing my income tax return for 2010, the subtotal of all my verifiable precautionary expenses is far below the possible maximum limit, which is why I would like to "top up" my total with the social security contributions deducted from the unemployment benefits.
My questions:
a) Which confirmation form do I need to request from the Employment Agency, detailing the precautionary expenses deducted by the Agency in 2010 (pension, health, and long-term care insurance)? Neither the "performance certificate for 2010" (which only lists the net amounts of unemployment benefits paid to me) nor the "approval notice" provide a breakdown by individual precautionary positions.
b) In which lines of the "Precautionary Expense Annex" should the individual positions be entered?
Dear inquirer,
Thank you for your inquiry. Based on the information provided, I am happy to answer your inquiry within the scope of an initial consultation, taking into account your effort and the rules of this platform. The opinion is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
Regarding question a)
Contributions to old-age provision and health and long-term care insurance are special expenses within the meaning of § 10 para. 1 nos. 2 and 3 EStG. The prerequisite for deducting these provision expenses is that they are not directly related to tax-free income (§ 10 para. 2 EStG). Subsidies provided by the Employment Agency for health or long-term care insurance and old-age provision are tax-free subsidies and therefore not deductible special expenses. If the maximum deduction limit has not been reached yet, you can also claim other miscellaneous provision expenses (e.g. accident and liability insurance as well as risk insurances that only provide benefits in the event of death, and pension insurances with capital option and life insurances with a minimum term of 12 years and start date as well as first premium payment before 01.01.2005).
Regarding question b)
In the annex for provision expenses, the following should be entered:
- Contributions to old-age provision: lines 4 to 10
- Statutory health and long-term care insurance: lines 12 to 30
- Other miscellaneous provision expenses: lines 44 to 50
I hope that I have provided you with an overview of the situation within this initial consultation and according to your information, and I am available for a personal discussion to address any further questions.
Kind regards,
Dr. Yanqiong Bolik
Tax consultant
