Innovations
WSB News 17 Jan. 2025

Technical article

The Annual Tax Act 2024 - Four innovations you should know about

The Annual Tax Act 2024 brings with it a number of changes. In our article, we highlight the four most important ones you should know as a private taxpayer!

  1. Childcare costs deductible at 80%:

Up to and including 2024, parents could only deduct two-thirds of their childcare costs, up to a maximum of EUR 4,000.00 per child, as special expenses.

From 2025, an improved deduction rate of 80% applies, up to a maximum of EUR 4,800.00.

  1. Cash payment of alimony taboo in future:

If you support other people financially, you can only deduct maintenance payments as extraordinary expenses if you pay them by bank transfer to the account of the person you are supporting.

  1. Nursing and care services in cash and on account

You can only deduct your expenses for care and support services as household-related services if you have an invoice and you pay it in cash to the service provider's account.

  1. Pension expenses also deductible for tax-free income

Until now, pension expenses could generally not be deducted as special expenses if they were related to tax-free income. An exception now applies to all open cases in which
- the pension expenses are not deductible in the country of employment and
- are related to income from employment earned in the EU, the EEA or Switzerland,
- which are tax-exempt in Germany under a double taxation agreement.

👉 Do you have any questions? Then get in touch with us.

We at WSB are happy to support you and help you with your tax questions and concerns:
www.wsb-berater.com/leistungen

#TaxTips #Annual Tax Act2024 #Tax changes #Childcare costs #Pension expenses #WSB




Contact
Nadja Neubig, Human Resources & Corporate Communications
WSB Wolf Beckerbauer Hummel & Partner Steuerberatungsgesellschaft mbB

Max-Jarecki-Str. 21 | 69115 Heidelberg
Phone: +49 6221 40509-10 | Fax: +49 6221 40509-30

Email: n.neubig@wsb-berater.de


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