Bundling advertising and medical expenses can be worthwhile
Expenses for work equipment and for healthcare needs are taken into account in different places in the tax return. And yet they affect each other.
Travel costs, specialist books, further education and training: If employees incur costs in connection with their job, these can be deducted from tax as income-related expenses. If high income-related expenses and high extraordinary expenses coincide in one year, this can have a positive effect on the tax burden. The taxpayers' association points this out.
The reason: The extent to which extraordinary expenses, for example for healthcare needs, can be deducted from tax depends on the taxable income. If this is reduced by high income-related expenses and allowances, the legislator expects taxpayers to bear a lower amount of expenses themselves due to the lower income. The threshold for deductibility is then lower.
An example illustrates the effect
The taxpayers' association gives an example: A taxpayer with a child (single assessment) has a gross salary of 50,000 euros, professional expenses of 2,000 euros for commuting to work and medical expenses of 1,500 euros for dental treatment. In this constellation, his reasonable burden is 1286 euros. This means that only 214 euros of the 1500 euros in medical expenses are recognized as an extraordinary burden.
However, if the taxpayer in the example also purchases a computer worth 950 euros for purely professional purposes, the income-related expenses increase and the reasonable burden falls to just 1258 euros. This means that 242 euros of the dental treatment could already be taken into account. If he also buys a pair of glasses worth 250 euros for his child in the same year, he can already deduct 492 euros from his tax bill.
"As soon as the reasonable burden limit is exceeded, further extraordinary expenses can be fully recognized for tax purposes," says Daniela Karbe-Geßler from the Taxpayers' Association. This is all the more successful if the income-related expenses have reduced income.
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- For taxpayers seeking to maximize deductions, consulting with a tax advisor about bundling advertising costs with medical expenses can provide valuable tax tips.
- The Tax Office closely monitors tax returns to ensure that consumers are accurately assessed based on their income tax liability, including the deductibility of advertising costs and medical expenses.
- The Taxpayers' Association advises against overlooking the potential benefits of tax assessment adjustments for taxpayers who incur significant advertising costs and healthcare expenses in a single year.
- To promote awareness among taxpayers, the Taxpayers' Association has launched an advertising campaign highlighting the importance of understanding tax rules regarding advertising costs and medical expenses in tax returns.
Source: www.ntv.de
