Tax return: Handwerker invoices from 23/24

[alma.freya]

Hello,

Me and my soon to be ex-wife are currently completing our 2023 tax return using WISO Steuer. We want to include some Handwerker invoices however they are spread across 2023 & 2024.

In 2023/24 we had a new bathroom installed, and in 2023 we received 3 partial invoices without itemisation or Lohnkosten. Today we received the final itemised invoice, but also without Lohnkosten.

Should we include the invoice(s) in our 2023 or 2024 tax return?

To complicate matters, we are getting divorced and our separation date is 1 Nov 2023. The lawyer told us we can file a joint return for 2023, but not for 2024.

If we include Handwerker costs on our individual 2024 tax returns, do we split them 50%?

[PandaMunich]

Me and my soon to be ex-wife are currently completing our 2023 tax return using WISO Steuer. We want to include some Handwerker invoices however they are spread across 2023 & 2024.

In 2023/24 we had a new bathroom installed, and in 2023 we received 3 partial invoices without itemisation or Lohnkosten. Today we received the final itemised invoice, but also without Lohnkosten.

Should we include the invoice(s) in our 2023 or 2024 tax return?

To complicate matters, we are getting divorced and our separation date is 1 Nov 2023. The lawyer told us we can file a joint return for 2023, but not for 2024.

If we include Handwerker costs on our individual 2024 tax returns, do we split them 50%?

You need an invoice from that Handwerker which states for the amounts that you paid in 2023 ("Entscheidend für den Abzug ist immer das Jahr der Bezahlung."), how much the contained labour costs, machine and Anfahrt costs as well as consumables (e.g. lubricants, cleaning or rinsing agents, grit) were (this is a Haufe article, which are always excellent, but they cannot be run through GoogleTranslate --> just copy the text into DeepL.com yourself, to translate it into English): https://www.haufe.de/recht/deutsches-an ... 59131.html
And you then include these amounts that were paid in 2023, in your 2023 joint tax return.

Should we include the invoice(s) in our 2023 or 2024 tax return?

To complicate matters, we are getting divorced and our separation date is 1 Nov 2023. The lawyer told us we can file a joint return for 2023, but not for 2024.

If we include Handwerker costs on our individual 2024 tax returns, do we split them 50%?

You would also need an invoice stating how much of the amount that you paid in 2024 was for labour costs, machine and Anfahrt costs as well as consumables (e.g. lubricants, cleaning or rinsing agents, grit).
I presume that the invoice will be addressed to both of you and that you also paid all amounts from your joint bank account.
--> then yes, you do get to each claim 50% of the these costs stated in the updated invoice in each of your 2024 "filing separately" (getrennte Veranlagung) tax returns.

[alma.freya]

Currently all invoices are addressed to my wife. 2 invoices from 2023 were paid with my bank account, 1 invoice paid from the joint account .

Is it also important that the 2023 invoices are addressed to both spouses and paid jointly?

The 2024 will be paid by me, and my wife will pay half back to me in the future as agreed in our separation agreement.

Is it possible for an invoice to be reissued with both spouse names and with the labour costs etc?

[PandaMunich]

Currently all invoices are addressed to my wife. 2 invoices from 2023 were paid with my bank account, 1 invoice paid from the joint account .
Is it also important that the 2023 invoices are addressed to both spouses and paid jointly?

For the 2023 tax return, it doesn't really matter, since you are still filing jointly.
It would only matter if you were filing separately also in 2023 (which is not a good idea, unless either of you had high income subject to Progressionsvorbehalt, e.g. a high UK rental profit, filing jointly is always more advantageous).

The 2024 will be paid by me, and my wife will pay half back to me in the future as agreed in our separation agreement.

That takes care of the "each of you needs to have really paid what you claim", which is necessary when filing separately.
But you still need the invoice to be addressed to both of you, you cannot claim for an invoice that is not addressed to you.

Is it possible for an invoice to be reissued with both spouse names and with the labour costs etc?

Yes.

[alma.freya]

Wonderful. I'll tell the Handwerker my requirements tomorrow. Thanks you do much for your input.

[alma.freya]

Response from Handwerker.

auf der 7. Seiten steht der Betrag für das Finanzamt.
Für die Abschlagszahlungen gibt es keine Aufstellung.
Der Leistungszeitraum ist auch aufgeführt.

Der Lohnanteil dieser Handwerkerrechnung beträgt inkl. Umsatzsteuer 5.892,29 €
Der Leistungszeitraum ist vom 17.04.2023 bis 17.01.2024.

As I understand, this amount can now only be entered on our individual 2024 tax returns?

This is actually ideal because we have other Handwerker invoices from 2023 to reach our 1.200 € refund limit.

[PandaMunich]

Response from Handwerker.

auf der 7. Seiten steht der Betrag für das Finanzamt.
Für die Abschlagszahlungen gibt es keine Aufstellung.
Der Leistungszeitraum ist auch aufgeführt.

Der Lohnanteil dieser Handwerkerrechnung beträgt inkl. Umsatzsteuer 5.892,29 €
Der Leistungszeitraum ist vom 17.04.2023 bis 17.01.2024.

As I understand, this amount can now only be entered on our individual 2024 tax returns?

This is actually ideal because we have other Handwerker invoices from 2023 to reach our 1.200 € refund limit.

Well, it would probably "be waved through" in your 2024 tax returns, i.e. you would get away with it.

However, correctly, you should claim for the amounts that were paid in 2023, in your 2023 tax return.
That is what is stated in side number 44 of the BMF-Schreiben regarding § 35a EStG, which is the income tax law rule under which you get the 20% tax credit for labour costs: https://esth.bundesfinanzministerium.de ... 7b-II.html

• 44
  Zahlungszeitpunkt
  Für die Inanspruchnahme der Steuerermäßigung ist auf den Veranlagungszeitraum der Zahlung abzustellen (§ 11 Absatz 2 EStG). Bei regelmäßig wiederkehrenden Ausgaben (z. B. nachträgliche monatliche Zahlung oder monatliche Vorauszahlung einer Pflegeleistung), die innerhalb eines Zeitraums von bis zu zehn Tagen nach Beendigung bzw. vor Beginn eines Kalenderjahres fällig und geleistet worden sind, werden die Ausgaben dem Kalenderjahr zugerechnet, zu dem sie wirtschaftlich gehören. Bei geringfügigen Beschäftigungsverhältnissen gehören die Abgaben für das in den Monaten Juli bis Dezember erzielte Arbeitsentgelt, die erst am 31. Januar des Folgejahres fällig werden, noch zu den begünstigten Aufwendungen des Vorjahres.
• 44
  Time of payment
  You can only claim for the tax reduction in the year you paid (Section 11 (2) EStG). In the case of regularly recurring expenses (e.g. subsequent monthly payment or monthly advance payment of a care service) that are due and paid within a period of up to ten days after the end or before the beginning of a calendar year, the expenses are attributed to the calendar year to which they belong economically. In the case of marginal employment relationships, the charges for remuneration earned in the months of July to December, which are not due until 31 January of the following year, are still included in the beneficiary expenses of the previous year.

[alma.freya]

Ah ok this makes sense.

We paid 74% of the total in 2023. Does this mean we can claim 74% of the Lohnanteil etc. in our 2023 tax return and 26% in our 2024 tax return?

Bildschirmfoto 2024-03-05 um 12.45.20.png (109.12 KiB) Viewed 3397 times

[PandaMunich]

We paid 74% of the total in 2023. Does this mean we can claim 74% of the Lohnanteil etc. in our 2023 tax return and 26% in our 2024 tax return?

Sorry, but no.
You would need the Handwerker to add the labour costs to each pre-payment invoice (Abschlagsrechung).

You are forbidden from splitting up these total labour costs of 5,892.29€ yourself.
The Handwerker has to do so.
See side number 40 in the BMF-Schreiben: https://esth.bundesfinanzministerium.de ... 7b-II.html

• 40
  Aufteilung
  Der Anteil der Arbeitskosten muss grundsätzlich anhand der Angaben in der Rechnung gesondert ermittelt werden können. Auch eine prozentuale Aufteilung des Rechnungsbetrages in Arbeitskosten und Materialkosten durch den Rechnungsaussteller ist zulässig. Eine Schätzung des Anteils der Arbeitskosten durch den Steuerpflichtigen ist nicht zulässig und kann auch nicht auf die Entscheidung des BFH vom 20. März 2014 (BStBl II S. 882) gestützt werden. Bei Wartungsverträgen ist es nicht zu beanstanden, wenn der Anteil der Arbeitskosten, der sich auch pauschal aus einer Mischkalkulation ergeben kann, aus einer Anlage zur Rechnung hervorgeht. Leistungen, die sowohl im als auch außerhalb des räumlichen Bereichs des Haushalts (Rdnr. 2) durchgeführt werden, sind entsprechend aufzuteilen. Zur Aufteilung der Aufwendungen bei Wohnungseigentümergemeinschaften genügt eine Jahresbescheinigung des Grundstücksverwalters. Entsprechendes gilt für die Nebenkostenabrechnung der Mieter. Abschlagszahlungen können nur dann berücksichtigt werden, wenn hierfür eine entsprechende Aufteilung vorgenommen worden ist und eine Rechnung vorliegt, welche die Voraussetzungen des § 35a EStG erfüllt (vgl. Rdnr. 49). Ein gesonderter Ausweis der auf die Arbeitskosten entfallenden Mehrwertsteuer ist nicht erforderlich
• 40
  Splitting up the invoiced amount
  In principle, it must be possible to determine the proportion of labour costs separately on the basis of the information in the invoice. A percentage breakdown of the invoice amount into labour costs and material costs by the invoice issuer is also permissible. An estimate of the proportion of labour costs by the taxable person is not permitted and cannot be based on the BFH decision of 20 March 2014 (BStBl II p. 882). In the case of maintenance contracts, it is not objectionable if the share of the labour costs, which can also result as a lump sum from a mixed calculation, is shown in an attachment to the invoice. Services that are carried out both inside and outside the household premises (paragraph 2) must be apportioned accordingly. An annual certificate from the property manager is sufficient for the apportionment of expenses in the case of condominium owners' associations. The same applies to tenants' service charge accounts. Payments on account can only be taken into account if a corresponding apportionment has been made and an invoice is available that fulfils the requirements of § 35a EStG (see paragraph 49). It is not necessary to separately state the VAT attributable to the labour costs.

and side number 49:

• 49
  4. Nachweis
  Die Steuerermäßigung ist davon abhängig, dass der Steuerpflichtige für die Aufwendungen eine Rechnung erhalten hat und die Zahlung auf das Konto des Erbringers der haushaltsnahen Dienstleistung, der Handwerkerleistung oder der Pflege‑ oder Betreuungsleistung erfolgt ist (§ 35a Absatz 5 Satz 3 EStG). Dies gilt auch für Abschlagszahlungen (vgl. Rdnr. 40). Bei Wohnungseigentümern und Mietern müssen die sich aus Rdnr. 47 ergebenden Nachweise vorhanden sein. Es ist ausreichend, wenn der Steuerpflichtige die Nachweise auf Verlangen des Finanzamtes vorlegen kann.
• 49
  4. proof
  The tax reduction is dependent on the taxpayer having received an invoice for the expenses and the payment having been made to the account of the provider of the household-related service, the craftsman service or the care or support service (Section 35a (5) sentence 3 EStG). This also applies to payments on account (see para. 40). In the case of homeowners and tenants, the evidence specified in paragraph 47 must be available. It is sufficient if the taxpayer can provide the evidence at the request of the tax office.

[alma.freya]

Ok the handwerker has told me:

es gibt nur eine Schlussrechnung, das andere waren Abschlagszahlungen.

So if I have made payments in 2023 & 2024, what is the best tactic for claiming these expenses?

I could try and claim the full Lohnanteil for 2023 and if it is rejected, try again in 2024?

[PandaMunich]

If you only have one invoice with the labour costs indicated, the one from 2024, then claiming on that in your 2023 tax return will be a bit difficult

[alma.freya]

Ok I will wait and claim it on 2024 and hope the Finanzamt allows it. Thank you for your advice.

[alma.freya]

A final question regarding the wording on the invoices. I am unsure if the Lohnanteil includes or excludes the VAT amount (I struggle with this in English):

In der Rechnung sind 1820,81€ Lohnkosten zzgl. 19% Mwst. enthalten.

Should I add 345,99 € sales tax to this amount?

Der Lohnanteil dieser Handwerkerrechnung beträgt inkl. Umsatzsteuer 5.892,29 €

I think this means the value 5.892,29 already has the sale tax included in the amount?

[PandaMunich]

A final question regarding the wording on the invoices. I am unsure if the Lohnanteil includes or excludes the VAT amount (I struggle with this in English):

In der Rechnung sind 1820,81€ Lohnkosten zzgl. 19% Mwst. enthalten.

Should I add 345,99 € sales tax to this amount?

Add 345,95€.

Der Lohnanteil dieser Handwerkerrechnung beträgt inkl. Umsatzsteuer 5.892,29 €

I think this means the value 5.892,29 already has the sale tax included in the amount?

Yes.

[alma.freya]

Excellent. I noticed one of the invoices from 2023 has the incorrect address, and they said that they can re-issue the invoice with a new address. This new invoice will be dated 2024, however because the payments were made in 2023, I can enter this data in my 2023 tax return, right ("Entscheidend für den Abzug ist immer das Jahr der Bezahlung.")?

[PandaMunich]

Yes.