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Liability insurance deductible in tax return? This is how it works

2021-09-17T10:30:41.521Z


Liability insurance is actually a must for everyone. Many people ask themselves: Can I also deduct private liability in my tax return?


Liability insurance is actually a must for everyone.

Many people ask themselves: Can I also deduct private liability in my tax return?

The private liability insurance covers damage that you have caused out of carelessness or recklessness.

This can range from a destroyed smartphone to serious accidents.

Therefore, liability insurance is indispensable, as the consumer advice center explains.

The legislature also recognizes how important private liability insurance is - therefore the costs can also be deducted in the tax return.

Why can private liability insurance be deducted from my tax return?

Liability insurance is

deductible

as a

pension expense

in the tax return.

With this, the legislature would like to support citizens in protecting themselves against the risks in life with insurance.

You can therefore get the costs back using your tax return.

How to deduct private liability in your tax return

Enter your annual insurance contribution for liability in the

annex "Pension expenses" (lines 46-50) of

the income tax

return

.

If you have several liability insurances, simply add up the amounts and enter the total in the field.

As a rule, you will receive

a proof of

contribution

from the insurance company

, which you can present to the tax office as proof of your private liability.

However, a copy of the insurance contract and bank statements showing the premiums paid are sufficient, as Allianz informs on its website.

Also interesting

: Tax return: What Elster really brings - and what you should know when saving.

Who can deduct private liability from tax?

In principle, anyone who has private liability and has taxable income can state the costs for this in their tax return.

Please note, however, that there is

a maximum limit of 1,900 euros

for

pension expenses

.

For

self-employed and freelancers, the limit is 2,800 euros per year

, as they have to pay all of their health insurance contributions themselves.

In the case of salaried employees, the employer pays half of the costs.

Married couples

who

file

a joint tax return may add their respective maximum limits to one another.

Any costs in excess of this amount can no longer be deducted from tax.

Is it worth it to deduct liability from tax?

The maximum limit for pension expenses is often

reached

by

health and long-term care insurance

alone

.

Therefore, it is only worth stopping private liability if the framework has not yet been exhausted.

This is usually the case with

low-income workers or retirees

.

Also read

: Child benefit and child allowance: How parents can save taxes in the future.

Tax return: Other deductible insurance

In addition to personal liability, you can state other insurances in your tax return that serve as a precaution.

This includes:

  • Health insurance

  • care insurance

  • Accident insurance

  • unemployment insurance

  • retirement provision

  • Disability insurance

  • Term life insurance

  • Dental insurance

  • Travel health insurance

* Merkur.de is an offer from IPPEN.MEDIA.

Source: merkur

All life articles on 2021-09-17

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