Following a legislative amendment by the German federal government, the disability lump sums (Behinderten-Pauschbeträge) doubled as of 01/01/2021, and the additional requirements under the Income Tax Act no longer apply. The reason for the adjustment was an outdated statutory basis, under which the lump sums could in no way cover today's cost of living.
Fundamentals of the Disability Lump Sum
People with disabilities generally incur higher costs than people without a disability. Typical additional costs may include medication, care, increased laundry needs, etc. For this reason, the state seeks to provide these individuals with particular financial support and has therefore established the disability lump sum. It is granted as an election in lieu of extraordinary expenses under § 33 EStG, since extraordinary expenses must first exceed the reasonable burden thresholds under § 33 Abs. 3 EStG. The lump sum, by contrast, is granted independently of the actual costs incurred. It should also be noted that the costs must be recurring on a regular basis. Otherwise, they must be claimed as extraordinary expenses (§ 33b Abs. 1 EStG) and must exceed the reasonable burden thresholds.
Amount of the Disability Lump Sum
The amount of the lump sum generally depends on the degree of disability (Grad der Behinderung, GdB). This degree is determined at the beginning of the calendar year on the basis of a medical report and applies for the entire year, even if the GdB changes during the year according to a medical report.
The amounts of the disability lump sums in 2020 and 2021:
Lump sums up to assessment period 2020
Lump sums from assessment period 2021
Degree of disability of
Lump sum in EUR
Degree of disability of
Lump sum in EUR
20
384
25 and 30
310
30
620
35 and 40
430
40
860
45 and 50
570
50
1,140
55 and 60
720
60
1,440
65 and 70
890
70
1,780
75 and 80
1,060
80
2,120
85 and 90
1,230
90
2,460
95 and 100
1,420
100
2,840
Changes to the Disability Lump Sums from 2021
Up to and including 2020, persons with a disability with a GdB below 50 but above 25 were granted a lump sum only if at least one of the two conditions under § 33b Abs. 2 EStG was met:
- the person is entitled by law to a pension (e.g. accident pension)
- the disability permanently restricts physical mobility or is based on an occupational illness
From 2021 onward, the requirements of § 33b Abs. 2 EStG no longer apply, and instead persons with a GdB of at least 20 are also entitled to a disability lump sum. For this reason, individuals with a GdB between 20 and 50 who were previously denied the lump sum should file a new application with the tax office.
Frequently asked questions
Frequently asked questions
What is the disability lump-sum allowance from 2021 onwards?
Effective from the 2021 assessment period, the disability lump-sum allowances (Behinderten-Pauschbeträge) were doubled. They range from EUR 384 for a degree of disability (GdB) of 20 up to EUR 2,840 for a GdB of 100. The allowances are granted in increments of 10 GdB points.
What additional requirements apply from 2021 onwards for the disability lump-sum allowance with a GdB below 50?
From 2021 onwards, the additional requirements under § 33b Abs. 2 EStG no longer apply. Until 2020, individuals with a GdB below 50 had to either demonstrate a statutory pension entitlement (e.g. accident pension) or have a permanent restriction of physical mobility or an occupational illness. Since 2021, all individuals with a GdB of at least 20 receive the lump-sum allowance without any further requirements.
When is the disability lump-sum allowance more beneficial than the deduction of extraordinary expenses under § 33 EStG?
The lump-sum allowance is granted as an alternative to the deduction of extraordinary expenses under § 33 EStG and applies regardless of the actual costs incurred. It is advantageous when the recurring disability-related expenses do not exceed the reasonable individual burden defined in § 33 Abs. 3 EStG. Non-recurring extraordinary expenses may additionally be claimed as extraordinary expenses alongside the lump-sum allowance.
How is the relevant degree of disability determined for the tax year?
The degree of disability (Grad der Behinderung, GdB) is determined at the beginning of the calendar year by a medical assessment and applies for the entire year. Even if the GdB changes during the year based on a new assessment, the value established at the start of the year remains decisive for the amount of the lump-sum allowance.
Should previously rejected applications for the lump-sum allowance be resubmitted after the reform?
Yes. Individuals with a degree of disability between 20 and under 50 whose application was rejected up to 2020 due to the additional requirements of § 33b Abs. 2 EStG should file a new application with the tax office from 2021 onward. With the elimination of these additional requirements, they are now entitled to the lump-sum allowance.