In its judgment of 15 April 2015 (Az. 11 K 1276/13 E), the 11th Senate of the Münster Tax Court ruled that personally providing care for a relative does not give rise to a deduction of one's own (notional) extraordinary expenses. The plaintiff, a salaried physician, personally cared for her seriously ill father, who had been classified as care level 2. In her income tax return, she claimed approximately EUR 54,000 as extraordinary expenses, calculated on the basis of the hourly rate of EUR 29.84 applicable to hospital doctors on standby duty. By contrast, the tax office only recognised the care lump sum (§ 33b Abs. 6 EStG) in the amount of EUR 924. The plaintiff took the view that it should not be held against her that she had not engaged a professional care service. The court did not follow this view and dismissed the action. The services rendered personally were not to be recognised as extraordinary expenses, since the clear wording of § 33 Abs. 1 Satz 1 EStG only covers "expenses". This term encompasses only monetary outlays and transfers of tangible assets. This assessment is also consistent with the subjective net principle, according to which certain atypical expenses are to be exempted from taxation. However, these must have an asset-reducing effect. Nor can it be inferred from § 33b Abs. 6 EStG that one's own care services are generally tax-deductible. Rather, the care lump sum captures, on a standardised basis, the expenses typically associated with providing care (e.g. for hygiene products and care materials), but not one's own personal services. Norms: EStG:33/1/1 EStG:33b/6 Citations Case law
FG Münster judgment 11 K 1276/13 E of 15 April 2015
Frequently asked questions
Frequently asked questions
Are personally provided care services for relatives deductible as extraordinary expenses?
No. According to the ruling of the Fiscal Court (Finanzgericht) Münster of 15 April 2015 (case no. 11 K 1276/13 E), personally provided care services cannot be deducted as extraordinary expenses under § 33 Abs. 1 EStG. The statutory wording only covers actual expenditures in the form of monetary outlays or contributions in kind, but not notional values of one's own work performance.
Why can notional hourly rates for one's own care services not be claimed for tax purposes?
Extraordinary expenses under § 33 EStG require that the expenditures actually reduce the taxpayer's assets. However, no real monetary outlay arises when care services are provided personally. This also reflects the subjective net principle, which only exempts actual reductions in assets from taxation.
What amount can be claimed for tax purposes when personally providing care for a relative?
For unpaid home care of a relative, the care lump-sum (Pflegepauschbetrag) under § 33b Abs. 6 EStG of EUR 924 per year can be claimed. This flat amount covers the typical expenses associated with care, such as hygiene products and care materials.
Does the care allowance under Section 33b (6) EStG also cover the value of one's own care work?
No. The care allowance only covers the typical material costs usually associated with providing care, such as care supplies and hygiene products. The value of the caregiver's own services is not compensated by the lump-sum allowance and is also not separately deductible.
Is it a tax disadvantage to care for a relative yourself instead of hiring a professional care service?
From a tax perspective, this can be disadvantageous, as only actual payments to a care service qualify as extraordinary expenses under § 33 EStG. The Münster Tax Court has confirmed that this cannot be offset by applying fictitious hourly rates for your own care services.