Costs for household-related craftsmen's services can lead to tax reductions. You can deduct 20% of these costs directly from your tax. Here you can find out what you need to pay attention to and how to enter the costs in the Taxfix app. In the video below we explain the process step-by-step.
Content:
- Which craftsmen's services can I deduct?
- How much can I claim for the costs?
- Pay attention to invoices and payment methods
- How to enter craftsmen's costs in the Taxfix app (Video)
Which craftsmen's services can I deduct?
Costs for work carried out in your household that serve to maintain or renovate your home are deductible. This includes, for example:
- Drainpipe cleaning
- Gutter cleaning
- Repairing the washing machine in your home
- Water damage restoration
Only the labour costs (incl. VAT incurred) for 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 the craftsman 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. There is a maximum annual limit of 1,200 euros for craftsmen's costs.
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 craftsmen's costs in the Taxfix app
You can enter costs for 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 separately.
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 invoices, you can simply add the amounts together.