Extraordinary expenses
Extraordinary expenses are defined as expenses for:
- The living expenses of children aged 27 years and up, close relatives, and ill or handicapped children up to the age of 26;
- Illness, childbirth, incapacity, and death;
- Education or a study programme for a profession of yourself or your spouse;
- Study costs of children up to the age of 26 attending a Lower Vocational Education, Higher Vocational Education, university, or comparable education programme.
Please note! The extraordinary expenses will also be aggregated for married persons. The extraordinary expenses of the spouse with the lowest personal income will be allocated to the spouse with the highest personal income.
The spouse with the highest personal income can deduct these costs. You must consider the joint income of yourself and your spouse to calculate the threshold.
Living expenses
You can deduct the necessary living expenses of the following family members of yourself and/or your spouse:
- Children and foster children aged 27 years and up;
- Spouses of these children;
- Parents (including foster parents) and grandparents;
- (Half-)brothers and (half-)sisters and their spouses.
The living expenses of these family members can be deducted if these persons are unable to bear their own living expenses. The deduction is limited to USD 1,397 per supported person. If you support your mother and father, for example, the deduction is limited to two times USD 1,397 or USD 2,794. The overall amount eligible for deduction is also capped. You can deduct up to 10% of your personal income as living expenses.
Necessary living expenses of children up to the age of 26 unable to bear their own living expenses due to illness or incapacity can be deducted without the limitation above.
Expenses that qualify for compensation from, for example, your employer, insurance company, or support fund cannot be deducted, including when you receive this compensation in a later year.
Expenses related to illness, incapacity, childbirth, and death
Expenses related to illness, incapacity, childbirth, and death of yourself, your spouse, your own children, your children by marriage, and foster children, as well as of your relatives (by marriage) in the first line (such as grandparents, parents, and grandchildren) or in the second grade of the lateral line (such as brothers and sisters) are deductible.
This concern, for example:
- Healthcare insurance premiums;
- Costs of physicians, dentists, and hospitalisation;
- Medication;
- Contributions to home nursing services;
- Glasses and contacts;
- Funeral costs (premiums for funeral funds are only deductible if no benefits in cash are provided in case of death).
Costs of car travel in relation to illness and the like (such as a visit to a physician) are deductible to a limited extent. If you use your own car, you can deduct up to an amount of USD 0.20 per kilometre. If you use the car of somebody else, you can deduct the fuel costs.
Please note! You can only deduct that part of the living expenses, costs of illness, costs of incapacity, costs of childbirth, and costs of death that exceeds a certain minimum amount (the threshold).
These costs can be deducted if they jointly amount to more than 5% of the personal income with a minimum of USD 838. When calculating the threshold amount of married persons, the joint personal income of both spouses will be considered.