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Tax reduction for illness-related nursing home accommodation

Tax reduction for illness-related nursing home accommodation



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BFH: Both spouses have to consider household savings
If spouses have to go to a retirement or nursing home because of their illness, they can only claim the costs to a limited extent to reduce taxes. If the couple breaks up their previous shared household, the costs can be stated as extraordinary burdens in the tax return, but only reduced by a household saving for each person, the Federal Finance Court (BFH) in Munich decided on Wednesday, December 6, 2017, published judgment (Az .: VI R 22/16). It is not permissible that the spouses' expenses are reduced by just one person's household savings.

An elderly couple from Bavaria had sued and had to move to an old people's and nursing home from May 2013 onwards due to illness. They wanted to claim the home costs incurred in the amount of around 27,500 euros in the most comprehensive tax-reducing way in their tax return as an extraordinary burden for health reasons.

Since they previously had only one shared and now disbanded household, they only deducted household savings for one person from the home costs. The savings were calculated according to the maximum maintenance amount specified in the income tax law in the amount of 8,130 euros at the time (today 8,820 euros). The household savings for one person was 3,387.50 euros.

But the tax office did not participate. The agency said that the couple should take into account not just one person's household savings, but for both spouses. The home costs should therefore be reduced by a total of 6,775 euros, only the rest can be claimed as extraordinary charges.

The BFH also followed this in its judgment of October 4, 2017. If both spouses are accommodated in the nursing home due to illness and there is no longer a household, both will also result in household savings. Because both are relieved of the task of the common household to the rent, electricity or food costs. fle / mwo

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