extraordinary burdens
January 27, 2012 | 30,00 EUR | answered by Oliver Burchardt
In our 2010 tax return, we claimed an additional extraordinary burden of 3,617.04 euros (there are already extraordinary burdens of 6,100 euros, so the reasonable burden is exceeded). This is not accepted by the tax office.
Explanation of the additional extraordinary burden: our private health insurance requires an annual deductible of 3,700.00 euros per adult and 1,850.00 euros per child (up to 16 years). This would mean a maximum deductible of 12,950.00 euros per year for 5 family members (2 adults, 3 children). Therefore, we have a special tariff with our private health insurance (Mannheimer KV) in which the annual deductible that would normally be paid individually by each of our 5 family members in the amount of 3,700.00 euros or 1,850.00 euros in 2010 is capped at a monthly premium of 301.42 euros, so that the deductible of 3,700.00 euros or 1,850.00 euros only has to be paid once by us per year and not a maximum of five times. Our health insurance refers to this as a "family deductible". We have had such high medical expenses every year, including 2010, that if this family deductible had not been agreed upon, we would have definitely paid the 3,700 euros per adult as deductible twice. The actual 1,850 euros deductible for the children was also reached in full or in part. These amounts would then have been taken into account as extraordinary burdens without the family deductible.
Is there a possibility to effectively claim the contributions for the aforementioned capping of the deductible (301.42 euros per month = 3,617.04 euros per year) as extraordinary burdens with an objection?
Dear inquirer,
Thank you for your request, which I would like to answer as part of an initial consultation.
Please note that the tax assessment is based on the information provided. Adding, changing, or omitting information can potentially alter the result significantly.
An extraordinary burden can only exist if you incur expenses that are unavoidable and not faced by the majority of taxpayers.
In your case, I find the criterion of unavoidability problematic. Unavoidability can arise from legal, moral, or factual reasons. In your case, only factual reasons are relevant.
However, a factual reason only exists if you have no influence on the incurring of the expense. This is not the case in your situation. You agreed to the additional contributions voluntarily. The tax authorities will rely on this fact in case of a rejection.
Depending on the individual circumstances (for example, if you are chronically ill and therefore, according to medical assessment, will always exceed the deductible amount), it can be argued that despite the voluntary nature of the additional contribution, there are still factual reasons. However, you bear the burden of proof for this.
I do not see great chances of success for such an argument in the context of the appeal process. You should prepare yourself for the tax authorities to reject the appeal and then pursue the legal route in tax matters.
I cannot advise you to do so, as the chances of success are too uncertain in this case.
I hope this information has been helpful.
Kind regards,
Oliver Burchardt
Certified Public Accountant
Tax advisor
