Anlage Unterhalt

[allpfl]

I am supporting parents outside germany and support will be submitted in Anlage Unterhalt with needed documents. Support money was given to parents in cash while doing parents visit.

Can I claim cost of flight ticket, for this visit when money was handed over, as a tex deduction? If yes in which Anlage and under which line/topic this can be done. @Panda Munich I hope you wil read this topic

[allpfl]

As well additional information...

In 2023 form there is section '' Unterhaltszahlungen durch Übergabe von Bargeld (in den Zeilen 9 .... enthalten)''.

In case money was given on 3 occasion in cash how to fill in Zeile 14-15 as it gives just two options. 3 would be needed...

Form for 2022 was slightly different and easier to fill in...

[PandaMunich]

I am supporting parents outside germany and support will be submitted in Anlage Unterhalt with needed documents. Support money was given to parents in cash while doing parents visit.

Then I hope that your German bank account also shows you withdrawing that amount at the most 2 weeks before you handed over the cash to your parents, see this requirement in side no. 17 of the BMF-Schreiben v. 06.04.2022 "Berücksichtigung von Aufwendungen für den Unterhalt von Personen im Ausland als außergewöhnliche Belastung nach § 33a Absatz 1 Einkommensteuergesetz (EStG)": https://esth-bundesfinanzministerium-de ... r_pto=wapp

• 6.2 Other payment methods
  General information
  17
  The taxpayer can also choose another method of payment if the maintenance payment made in this way is sufficiently proven (BFH ruling of 14 May 1982, BStBl II page 774). In accordance with the principles set out in points 3 and 4, higher standards of proof must be met for cash maintenance payments and all other payment methods. Proof of withdrawal and detailed recipient confirmations (see para. 21) are required. There must be a sufficient factual connection (maximum period of two weeks) between the withdrawal and the respective transfer of money. Proof of travel must always be provided on the basis of tickets, petrol receipts, border crossing notes, flight tickets, visas, etc.

--> Doing cash payments is too much hassle, just transfer the money into your parents' bank account.

And take care to do the transfers at the start of the year.
The worst you can do is transfer a large amount in December, since the money does not "carry over" to the next year and you would only be able to claim 1/12*Grundfreibetrag as support.
See the example in side no. 25 in the above BMF-Schreiben:

• For each full calendar month in which the general requirements for the deduction of maintenance expenses were not met, the maximum amount that can be taken into account in accordance with margin no. 34 is reduced by one twelfth (Section 33a (3) sentence 1 EStG). It must therefore be determined for which months payments were made.
  
  Example 5:
  The taxpayer supports his needy 70-year-old mother, who lives in a country in country group 1 (no reduction), by making monthly transfers from June to December 2021 totalling EUR 800 each.
  
  Proven expenses for maintenance 5,600 euros
  Maximum amount (§ 33a para. 1 sentence 1 EStG) 9,744 euros
  Pro rata reduction of the maximum amount by 5/12
  (§ 33a para. 3 sentence 1 EStG, first payment in June) - 4,060 euros
  Deductible expenses for maintenance (7/12) 5,684 euros
  The maximum amount of maintenance expenses to be deducted is 5,684 euros.

and the example in side no. 28:

• If payments are not exclusively intended to cover the maintenance requirements of the current calendar year, but also of the following calendar year, the total maintenance expenses can only be recognised in the calendar year of the payment, but not in the following calendar year. It is assumed in favour of the taxpayer that the payment serves to cover needs until the end of the calendar year of the payment (BFH ruling of 25 April 2018, BStBl II page 643).
  
  Example 6:
  The taxpayer transfers an amount of EUR 3,000 to his needy father in a country in country group 1 for the first time in December 2021 (no reduction). The payment is intended for maintenance until 30 June 2022.
  
  The maintenance payment was paid in 2021 (Section 11 (2) EStG). The maintenance expenses are deductible at EUR 812 (1/12 of EUR 9,744). It cannot be taken into account in 2022.

Can I claim cost of flight ticket, for this visit when money was handed over, as a tex deduction?

No.

In 2023 form there is section '' Unterhaltszahlungen durch Übergabe von Bargeld (in den Zeilen 9 .... enthalten)''.

In case money was given on 3 occasion in cash how to fill in Zeile 14-15 as it gives just two options. 3 would be needed...

If you are filing on paper, write these 3 dates you entered your home country, when you handed over the money and the amounts into the space for the 2 occasions.
If you are filing electronically, you can add lines in ELSTER, see here, I was able to put in 3 occasions on which cash was handed over:

2024-04-29 01_22_24-ELSTER - ESt unbeschränkt (ESt 1 A) - 3 - Weitere Angaben zu Unterhaltsleistunge.jpg (98.25 KiB) Viewed 2997 times

[allpfl]

Thank you. So far my cash delivery evidence was always accepted by finanzamt so I hope it stays like that.

I was bit consfued with new version of paper form. Still need to move myself to online form...

[Nixon]

I am sending (wiring) or giving my parents in person some amount. Approximately that is every 3-4 months.

Does it matter how often per year I give them money, or the tax return important part is to start sending/giving money in January?
Example: Giving them 500.00 EUR per month starting in January (Total of 6K) Vs. Giving them in January 200 EUR, 3K in May and 2800 EUR in October (Total of 6K)?

In some countries/areas you don't want older people to be seen as regular recipients of money from abroad, so I prefer giving them in person when I see them.

Thanks.

[PandaMunich]

I am sending (wiring) or giving my parents in person some amount. Approximately that is every 3-4 months.

Does it matter how often per year I give them money, or the tax return important part is to start sending/giving money in January?
Example: Giving them 500.00 EUR per month starting in January (Total of 6K) Vs. Giving them in January 200 EUR, 3K in May and 2800 EUR in October (Total of 6K)?

Let's assume your parents live in a country that is in country group 3, i.e. where the German state thinks a person can survive on 50%*Grundfreibetrag: https://esth.bundesfinanzministerium.de ... nhalt.html

The Grundfreibetrag changes every year: https://de.wikipedia.org/wiki/Grundfrei ... utschland)
--> for 2023, each parent would have needed per month: 50% * 10,908€/12 = 454.50€

With the way you do it, you will only get to claim for each parent (since half of each given amount "belongs" to each parent):

• 100€ for January 2023
  0€ for February 2023
  0€ for March 2023
  0€ for April 2023
  454.50€ for May 2023
  454.50€ for June 2023
  454.50€ for July 2023
  136.50€ for August 2023
  0€ for September 2023
  454.50€ for October 2023
  454.50€ for November 2023
  454.50€ for December 2023
  _________________________
  2,963.50€ of the 3,000€ that you gave lower your taxable income.

But the maximum possible that you could have given to each parent in country group 3 would have been more, 50% * 10,908€ = 5,454€.
--> If you had simply given each parent 5,454€ in January 2023, then 5,454€ per parent would have lowered your taxable income.

[Nixon]

Thank you Panda

[Nixon]

I just remembered an issue I had with Finanzamt regarding these payments.

They didn't want to accept them and they told me that I am not doing them regularly (as I said, I am giving/sending some amounts 3-4 times per year), they looked like a payout to them. It didn't matter to them that I am doing it for 10 years now. I had to go back and forward with them to justify the way I am doing it.
Would giving them a bulk sum of that amount once per year (in January) be a good option, or the Finanzamt lady just wanted to try to lower our refund?

[PandaMunich]

Would giving them a bulk sum of that amount once per year (in January) be a good option,

Yes.

[Nixon]

Thank you PAnda.

One more thing please.
Is tax refund on the parental support payments influenced by income?
Do people earning 50K who send 5K to parents get the same tax refund as a if they were earning 100K that send the same amount of 5K?

Thanks.

[PandaMunich]

Is tax refund on the parental support payments influenced by income?
Do people earning 50K who send 5K to parents get the same tax refund as a if they were earning 100K that send the same amount of 5K?

The Unterhalt you pay to your indigent parents lowers your taxable income.
--> someone who earns 100k€ has a higher tax rate and will therefore save a higher tax amount because of that Unterhalt than someone who only earns 50k€ a year.

You can look up the tax rate on your combined family income in the second graph in here: https://expertise.tax/en/faq-german-tax ... income_tax

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For people who have very low net incomes, the Opfergrenze (limit to what can be sacrificed) will have an effect, i.e. the state limits the amount they can claim as support, since it says that that person needs to take care of his/her spouse and the kids first, before paying money to an indigent parent: https://www-steuertipps-de.translate.go ... r_pto=wapp

[Nixon]

Thank you PAnda.

So much wrong we had out of our previous Steuerhilferin.
Next January we will have all the money given as a lump sum.