For most German citizens, the tax return is a real challenge. It can be recovered with a lot of diligence money that was paid in the previous year to the Treasury. According to the offices, an employee gets back on average over 1.000 euros per year.
But for this to succeed, the application for income tax assessment must be completed correctly. So where, for example, with the contributions to supplementary dental insurance (Zahnzusatzversicherung)? The following content clarifies and asks if the effort is really worthwhile.
The Deductible Insurance
Contributions to insurance are usually monthly. Some companies also require quarterly, semi-annual or annual forms of payment. It does not matter how insurance coverage is paid, usually, a decent amount comes together.
The Treasury rewards the willingness to hedge risks. Contributed insurance premiums to a company can be claimed as special expenses (Sonderausgaben). They are entered in the pension (Anlage Vorsorgeaufwand) as part of the tax declaration. Their taxpayers contribute their contributions to the pension, health, long-term care and unemployment insurance (Rentenversicherung, Krankenversicherung, Pflegeversicherung und Arbeitslosenversicherung).
Many other remittances to risk hedgers are also included. For example, contributions to foreign travel health insurance, occupational and disability insurance, liability insurance, endowment life insurance and accident insurance (Auslandsreisekrankenversicherung, Berufsunfähigkeitsversicherung, Erwerbsunfähigkeitsversicherung, Haftpflichtversicherung, Kapitallebensversicherung, Unfallversicherung).
Note: Property insurance policies such as those provided by a household or legal protection policy (Hausratsversicherung, Rechtsschutzversicherung) are not included in the special expenses (Sonderausgaben).
The Supplementary Dental Insurance (Zahnzusatzversicherung)
There are now several additional policies on the German market, which should fill the gaps in the statutory health insurance (gesetzliche Krankenversicherung). The dental insurance is just one of many. Contracts for outpatient and inpatient treatment are also available in different coverage.
The good news for taxpayers is that not just the amount of the statutory health insurance can be presented as a special expense (Sonderausgabe); additional and expanding safeguards are also included.
By the way: If a dental prosthesis is actually due, often arise in spite of an additional payment. These can also be presented in the tax return. Self-borne and actually incurred costs can be claimed as extraordinary burdens (außergewöhnliche Belastungen). If the reasonable self-imposed burden is exceeded (zumutbare Belastungsgrenze), the Treasury considers it as tax-reducing.
The Maximum Amount, Premium Refunds (Beitragsrückgewehr) and Private Insurance
Unfortunately, the tax office sets the special expenses (Sonderausgaben) limits. Because in the tax declaration, the authority takes into account a maximum amount of 1,900 euros for all precautionary expenses (Vorsorgeaufwendungen). Self-employed persons and persons without a contribution allowance (Freibetrag) may at least sell 2,800 euros. What does that mean in a specific case? Anyone earning 20,000 euros a year as a worker grossly exceeds the maximum amount with the basic health insurance cover. In this case, the supplementary dental insurance (Zahnzusatzversicherung) is defeated and does not have any tax effect in the context of the income assessment.
Some contracts for dentures provide for a premium refund. Decisive for this, for example, the health-conscious behaviour of the insured or a good annual result of society. Whatever the reason, if someone gets back amounts, they have to deduct them from the insurance costs paid. Always indicate the contribution paid minus any refunds.
There are two groups of private insured, namely those with health insurance subsidies and others without equity interests. The first category includes civil servants and most employees. You receive a grant or an employer grant. Only people without any contribution subsidy fall under the second category. You may, as described above, deduct up to 2,800 euros as special expenses.
Conclusion: Is An Indication Worthwhile In The Tax Return?
Anyone employed as a full-time employee will quickly exceed the maximum limit of € 1,900 accepted by the tax office. Even a below-average annual gross of 20,000 euros is enough for this already.
Therefore, the question actually arises as to whether the computational effort is worthwhile. The tip of the financial experts is clear: It is recommended to enter all numbers correctly. Only then can deductions and the chance for a favourable test exhaust (Günstigerprüfung). Especially employees who have worked only a few months a year should probably have the one or the other Euro in the pocket with the information on dental insurance.