Special tax deduction for a reduced capacity to pay taxes
You can claim a special deduction for a reduced capacity to pay taxes because of an illness, because of unemployment or a child-maintenance obligation, etc.
The deduction is granted only after an appraisal process of your circumstances.
The total income of all family members affects the deduction
Whether or not the special deduction can be granted to you depends on
- how much annual income you receive – including any tax-exempt income
- how much income the other members of your family receive (your spouse’s and your children’s income and wealth).
For this reason, the special deduction cannot be included in your tax-card calculation so that it would reduce your withholding rate.
Reduced capacity to pay taxes because of medical expenses
High health and medical costs qualify for the special deduction under the following two conditions:
- Annual costs reach €700 for the taxpayer and family, and
- They also reach 10% of the annual adjusted gross income (including both earned and capital income, net of any deductions for the production of income).
Medical expenses are not tax-deductible. Keep the receipts for the medical expenses you have paid. Do not enclose them with your tax return.
How much can be deducted?
The maximum deduction is €1,400.
For more information, see instructions and a calculation table for claiming medical expenses.
How to claim
You can apply for the special deduction for a reduced capacity to pay taxes for the year 2019 on your tax return that you will fill in in the spring of 2020.
You can also file the details on paper with Form 50A Earned income and deductions. Claiming expenses on paper
How does this affect my tax assessment?
The special deduction reduces your gross earned income subject to taxation.