Can I claim maintenance costs for my parents as tax deductible?
January 12, 2022 | 30,00 EUR | answered by Anneliese Schaaf
Dear tax advisor,
My name is Marcus Eberstark and I have a question regarding my tax return. Both of my parents are now in retirement age and require increased support in the form of financial assistance. I regularly cover living expenses for them to ensure that they can maintain their standard of living. Since this is naturally associated with additional financial burdens for me, I am wondering if I can deduct these support costs from my taxes.
I am concerned that the financial burden of supporting my parents may strain my budget significantly and I am unsure if I can claim any tax relief to at least receive some support. It would be very helpful for me to know if and how I can declare the support costs for my parents in my tax return.
Can you please provide me with information on whether and to what extent I can deduct the support costs for my parents from taxes? Are there specific requirements that need to be met in order for these costs to be considered? And if so, what evidence or documents do I need to provide in order to declare these costs in my tax return?
I thank you in advance for your support and advice.
Yours sincerely,
Marcus Eberstark
Dear Mr. Eberstark,
Thank you for your inquiry regarding the tax deductibility of maintenance costs for your parents. As a tax advisor, I can provide you with information on this matter and assist you in clarifying this question.
In general, it is possible to deduct maintenance payments for close relatives from your taxes. This includes children, parents, grandparents, spouses, or life partners. The maintenance payments must be intended to secure the recipient's necessary livelihood. This means that they must be financial contributions that actually serve to ensure the recipient's livelihood and not be used, for example, for luxury expenses.
In order to declare maintenance costs in your tax return, certain requirements must be met. Firstly, the payments must be regular and verifiable. This means that you can provide transfer receipts or bank statements, for example, to prove the maintenance payments. It is also important that the maintenance payments are made in an appropriate amount and within your financial means.
Furthermore, your parents must be in need, meaning they cannot independently finance their livelihood. For this purpose, income statements or pension notifications of your parents can serve as proof. It is important to be able to prove the neediness of your parents in order to ensure the tax recognition of the maintenance payments.
In your tax return, you can declare the maintenance payments in the maintenance attachment. There you can enter the amount of the maintenance payments and attach the corresponding evidence. However, note that maintenance payments are considered extraordinary burdens and certain allowances and reasonable burden limits must be considered.
I recommend consulting in detail with your tax advisor or an expert in tax law to clarify all relevant aspects and possibilities of tax deductibility of maintenance payments for your parents. I am also available for further questions.
I hope this information helps you clarify your tax situation. Feel free to contact me for any further questions.
Best regards,
Anneliese Schaaf
