Tax return: You can deduct these insurance policies - A guide for financial experts

Tax return: You can deduct these insurance policies - A guide for financial experts

According to a report from www.presseportal.de, certain insurance contributions can be deducted from taxes. These include, among other things, statutory pension insurance, private pension insurance (e.g. Rürup contracts), Riester contracts and various other pension expenses such as health insurance, nursing care insurance, liability insurance and professional liability insurance. However, there are maximum amounts and deduction limits that must be observed.

For 2022, the maximum amounts for retirement provision expenses are 25,639 euros for single people and 51,278 euros for married couples. However, the tax office only takes 94 percent of these maximum limits into account. From 2023, pension insurance contributions should be fully tax deductible.

Riester contributions can be deducted as special expenses up to a maximum of 2,100 euros. This includes both your own contributions and the state allowance.

For other precautionary expenses such as health insurance and accident insurance, there is a maximum deduction limit of 1,900 euros for employees and civil servants and 2,800 euros for the self-employed. Married people can declare double the amount.

Professional policies such as accident insurance and professional liability insurance can be deducted as business expenses without limitation.

It is important to keep relevant evidence such as transfer receipts or bank statements, as the tax office only deducts what was actually paid.

Most insurance policies are entered in the pension expenses appendix of the income tax return, while business-related policies are listed under business expenses.

For example, private legal protection and household contents insurance as well as investment products and capital life insurance that were taken out after January 1, 2005 are not deductible.

The information from the article shows that insurance premiums can have an impact on the consumer by being tax deductible, thereby easing the financial burden. This can encourage consumers to take advantage of precautionary and protective measures such as health insurance and liability insurance. For the insurance industry, this may mean greater demand for tax-efficient insurance products. The impact on the market could therefore include an increasing diversification of insurance offerings that offer tax advantages.