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!
- 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.
- 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.
- 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.
- 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
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