What do I need to consider when specifying special expenses in the tax return?
December 21, 2022 | 40,00 EUR | answered by Wolfgang Lenzner
Dear Tax Advisor,
My name is Georg Schottmann and I am currently facing the challenge of preparing my tax return for the past year. I am unsure of what I need to consider when declaring special expenses. I have always done my tax return myself, but this year I want to make sure that I fully take advantage of all opportunities to reduce my taxes.
In my case, there are various special expenses that I would like to claim. These include donations, health and long-term care insurance contributions, childcare costs, and contributions to retirement savings. I have collected all relevant receipts and proof, but I am unsure of how to correctly declare them in my tax return.
My concern is that I may make mistakes or forget important information that could result in me missing out on tax benefits. Therefore, I would be grateful if you could explain to me what I should pay special attention to when declaring special expenses in the tax return. Are there specific forms or attachments that I need to fill out? And are there any other ways to reduce my tax burden that I have not yet considered?
I look forward to your help and thank you in advance for your support.
Sincerely,
Georg Schottmann
Dear Mr. Schottmann,
Thank you for your inquiry regarding the declaration of special expenses in your tax return. It is very commendable that you are particularly thorough in addressing this issue this year in order to fully take advantage of possible tax benefits. I will be happy to explain to you in detail what you should consider when declaring special expenses.
First and foremost, it is important to collect and keep all relevant receipts and documents for your special expenses. These include, for example, donation receipts, contribution certificates for health and long-term care insurance, invoices for child care costs, as well as certificates for contributions to retirement provision. These receipts are important to substantiate your declarations in the tax return and to be able to present them in case of an inquiry by the tax office.
When declaring special expenses in your tax return, you must ensure that you fill out the corresponding attachments and forms correctly. In the attachment "Special Expenses" (Attachment Pension Provisions), for example, you can specify your contributions to health and long-term care insurance, retirement provision, as well as donations. In the attachment "Child," you can enter the child care costs.
It is also important to know that there are various ways to reduce your tax burden beyond declaring special expenses. For example, you can claim professional expenses, extraordinary expenses, or household-related services. Tax credits and lump sums can also reduce your tax burden.
Therefore, it is advisable to carefully examine all possible tax-reducing measures and declare them in your tax return. If you are unsure whether you have fully utilized all options for tax reduction, I recommend seeking advice from a tax advisor.
I hope this information is helpful to you and I am at your disposal if you have any further questions.
Yours sincerely,
Wolfgang Lenzner
