Costs for services in your own household can lead to tax reductions. You can deduct 20% of these costs directly from your tax. Here we explain what to look out for and how to enter the costs in the Taxfix app. In the video below we show you how to do this step-by-step.
Content:
- Which activities belong to household-related services?
- Which costs can I deduct?
- How much can I claim for the costs?
- Pay attention to invoices and payment methods
- How to enter household-related services in the Taxfix app (video)
Which activities belong to household-related services?
You can deduct the following activities, among others, as household-related services:
- Cleaning
- Gardening
- Care services
- Pet care
- Winter service
- Handyman services
Which costs can I deduct?
In principle, only the labour costs (incl. VAT incurred) for household-related services and craftsmen's services can be deducted. Material costs are not deductible.
Make sure that the invoice is itemised accordingly so that you can declare the costs correctly in your tax return. If the labour costs are not shown separately on the invoice, you can ask your service provider to issue a new, detailed invoice.
How much can I claim for the costs?
You can claim up to 20% of the costs incurred as tax deductions. These costs are deducted directly from your tax bill.
However, there are annual maximum limits for different services:
- Marginal employment (“Mini-Job”): maximum 510 euros
- Employment subject to compulsory insurance, self-employed service provider, nursing & care services: maximum 4,000 euros
- Craftsman services: maximum 1,200 euros
The Taxfix app automatically applies these percentages and limits and takes them into account when calculating your estimated tax result. You do not have to calculate the deductible amounts yourself.
Pay attention to invoices and payment methods
Tax reductions are only available for services for which an employment contract exists or for which an invoice has been written. Payment must be made by bank transfer - the tax office does not accept cash payments. Keep the invoices and payment receipts so that you can prove the costs if necessary.
How to enter household-related services in the Taxfix app
You can enter costs for household-related services and craftsmen in the category "Home". Please note that these costs can also be deducted as part of your utility bill. Our app asks for both options separately.
Household-related services and craftsmen's costs that are not part of your utility bill are entered in the question “Did you pay for any of these types of household service for your home in Germany?”. Select the type of services here and enter the annual amounts. If you had several bills, you can simply add the amounts together.