Potential denial of an extraordinary request might prompt a useful appeal action.
What kinds of medical expenses are taxpayers expected to pay for? This is the key question in determining their tax-deductibility. People dealing with health issues might see things differently from financial experts.
If you have significant expenses due to illness, such as medication, medical equipment, rehabilitation, treatment, or care, you might be able to claim them under specific conditions as an unusual burden. This is only allowed if your burden is actually higher than that of other taxpayers with similar income and assets.
If your costs fall below what's known as the burden limit, you're responsible for covering them yourself. The part above this limit can be deducted from your tax bill.
If the tax office doesn't recognize your unusual burdens, consider filing an objection
The Federal of Taxpayers Association suggests filing an objection if the tax office refuses to acknowledge your high costs because they are under the burden limit. It's worth noting that there are often constitutional complaints questioning this limit at the Federal Constitutional Court. A recent case has yet to be decided. By filing an objection, you can bring your tax assessment to light. If the court rules in favor of the complainant, others in the same situation whose tax assessment is unconfirmed might also benefit.
The reasonable burden depends on your total income, marital status, and number of children, according to the Federation of Taxpayers Association. If the total of your extraordinary burdens exceeds the reasonable burden, the excess amount lowers your taxable income.
Remember, for your extra charges to be considered at all, they must be unavoidable - that is, expenses that cannot be avoided legally, factually, or morally, and that taxpayers cannot avoid. In certain cases, proof of necessity might even be required.
Read also:
- This will change in December
- Dikes withstand water masses so far - Scholz holds out the prospect of help
- Fireworks and parties ring in 2024 - turn of the year overshadowed by conflicts
- Attacks on ships in the Red Sea: shipping companies avoid important trade route
- The Taxpayers' Association advises taxpayers to seek advice from their financial advisors if they're unsure about which advertising expenses can be included in their tax return.
- The tax office issued a tax assessment notice to the business, but they believe the assessment is incorrect due to the high advertising expenses incurred in reaching their target consumers.
- The Tax Office's decision to disallow certain advertising expenses as deductible led to a dispute between the taxpayer and the Tax Office, and the taxpayer considered engaging the Taxpayers' Association for assistance.
- In order to ensure compliance with income tax laws, the tax office closely scrutinizes items such as advertising expenses, looking for any discrepancies or signs of inflated costs, especially in the context of consumer goods and services.
Source:
