You can claim many insurance premiums as income-related expenses or special expenses for tax purposes.
Many people are unaware that they can include their insurance contributions in their tax return and thus save money. For many insurance contributions, money is also received from the state. However, this does not apply to all insurances but only to those who take out personal care insurance (healthcare or income protection) or for vocational or educational needs. On the other hand, you can not deduct tax from property insurance because this is neither for prevention nor necessary for the pursuit of a training or a profession.
Contributions to health care and income protection are tax deductible.
Contributions for occupational and educational insurance can be deducted from tax.
Contributions to insurance policies that cover only material assets are not tax deductible.
In order to make insurance contributions tax deductible, you need to understand a few basics: there are insurance companies that cover occupational risks and insurance companies that cover private risks. These two categories determine whether you can deduct contributions. Depending on the category, the insurance premiums may be deducted from the tax either as income-related expenses or as special expenses. See below for more details.
Insurance for professional risk → Advertising costs
Private risk insurance→ Special expenses
Note: It may well be that insurance covers not only a private but also a professional risk at the same time and thus can not clearly be classified in one of the two categories. This is often the case with a legal expenses insurance, in which the labour law protection is only a small part. The contributions are then split in the tax return under income-related expenses and special expenses accordingly. You must have it certified by your insurer as to which share of the insurance contribution falls on occupational risks and which on private. You should submit this certificate together with the tax return to the tax office.
Insurance contributions, which are registered on the employment tax bill, do not have to be proven, so you only have to cancel your payroll tax assessment. For all other insurance, you can only declare what was actually paid. The tax office therefore requires not only invoices but also appropriate transfer documents (bank statement).
At wundertax.de, you can choose different insurance categories (statutory and private health insurance, and other insurance) simply by clicking on "Add Expenses" and entering your expenses accordingly in the fields provided. Our tax tool automatically translates your information into the official tax forms/attachments. You do not have to worry about the categories and the divisions made by the tax office, our software does this for you automatically.