How does the deduction for household-related services work?
May 19, 2023 | 40,00 EUR | answered by Wolfgang Lenzner
Dear tax advisor,
I am Sofia Nitsche and I have a question regarding the deduction for household-related services. I have heard that it is possible to deduct the costs for certain services in the household from taxes, but I am unsure about how exactly this works.
The situation is as follows: I live alone in a large apartment and work full-time, so I don't have much time for housework. Because of this, I have hired a cleaning lady who regularly helps me with cleaning the apartment. Additionally, I also have repairs done in the house from time to time to maintain the value of the property.
My concern is that I do not know exactly which costs for household-related services are deductible and how high the tax benefit actually is. I would like to learn more about this in order to correctly fill out my tax return and potentially save money.
So my question to you is: How does the deduction for household-related services work and which specific services are deductible? Are there certain requirements that need to be met in order to take advantage of this tax benefit? And what is the maximum amount that can be deducted annually?
I would greatly appreciate it if you could help me and explain to me exactly how I can benefit from the deduction for household-related services.
Thank you in advance for your help.
Sincerely,
Sofia Nitsche
Dear Mrs. Nitsche,
Thank you for your question regarding tax deductions for household-related services. I am happy to explain in detail how this tax benefit works and which services are deductible.
The tax deduction for household-related services allows you to deduct certain costs for services in the household from your taxes. This includes expenses for housekeepers, cleaners, gardeners, craftsmen, caregivers, or childcare costs. These services must be performed either in your own household or on an immediately adjacent property.
In order to claim this tax benefit, you must meet certain requirements. Firstly, the services must be provided in your own apartment or on your property. Additionally, you must specify and prove the costs for the services as household-related services in your tax return. For this, you should collect invoices and receipts to substantiate the expenses.
The maximum amount you can deduct annually for household-related services is 20% of the costs, but no more than 4,000 euros per year. This means that you can deduct up to 800 euros per year from your taxes if you can prove the corresponding costs for household-related services.
In order to benefit from this tax advantage, it is important to meticulously document the costs and specify them in your tax return. Also, keep in mind that not all household services are deductible, only those explicitly classified as household-related services.
I hope this information has been helpful to you and I am happy to answer any further questions you may have. Thank you for your interest and your inquiry.
Best regards,
Wolfgang Lenzner
