Personal allowance

Excessive expenses due to a personal situation may classify as an extra tax-deductible expense item.  These extra expenses are then assigned to a personal allowance. Personal allowance items include:

  • Paid alimony
  • Specific health care costs
  • Costs for a temporary stay at home of severely disabled children
  • Expenses for educational purposes
  • Gifts
  • Maintenance costs for registered monumental buildings
  • Loan to a start-up company (venture capital)

Alimony paid to an ex-partner

Paid alimony can be deducted from the box 1 income taxation. Other dependency costs may be included. No court settlement for alimony payment is required to classify for this personal allowance item.  An ex-partner is a former wife or husband (divorce), someone with whom you lived together, a wife or husband form whom you are separated. 

Note: as of 1 January 2020, a maximum of 46%of the paid alimony can be deducted for an income of € 68,507 and up.

Tax Deductible Expenses

The following expense items are tax-deductible:
  • A periodic payment for partner alimony and any supplement payments for it
  • A lump-sum payment for partner alimony
  • A lump-sum payment for an annuity settlement with an insurer
  • Partner pension paid in the form of an alimony
  • Payments to settle pension entitlements, annuity and other income insurances for which premiums have been deducted earlier
  • Settlement of social security payment claims by an ex-partner
  • Your occupant home tax expenses if your partner stays in the former residential home
The following expenses are not tax-deductible:
  • Expenses for attorneys, lawyers and court cases to determine, alter or end alimony payments
  • Pension entitlements paid directly to an ex-partner 

Specific health care costs

Specific health care costs may be tax-deductible. The following conditions are required to apply the specific health care costs as a tax-deductible:
  • The specific health care costs don't resort under the insurance excess (i.e. is not part of an insurance policy)
  • Expenses directly related to the medical condition are tax-deductible
  • The deduction should be for the tax year in which the expenses were made
  • Expenses for which no coverage can be obtained from a health care cost insurance and for which no allowance is available, qualify as a deductible
The qualifying expenses made for the following persons are tax-deductible as well:
  • You and your fiscal partner
  • Children younger than 27 years of they cannot afford the expenses
  • Severely disabled persons, older 27 years and over, who were part of your family household
  • Parents, brothers, and sisters who are part of your family household

Expenses for educational purposes

Expenses for education purposes can be tax deductible if it meets the following criteria:
  • You are not entitled to a scholarship
  • The education is to improve your position on the labor market
Expenses directly related to education are tax-deductible, such as tuition fees, course fees, and examination fees and study or course material required such as specific books and software. The educational expenses for a fiscal partner can be included as a tax-deductible. 

The following expenses are not tax-deductible:
  • Costs for a (laptop) computer, printer or other peripherals
  • Travel expenses
  • Interest payment for the education
  • Expenses for a study room
Educational expenses for children cannot be included in your tax deduction. The educational expenses should be deducted in the tax year in which the expenses were incurred.

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