Anyone who states his private occupational disability insurance in the tax return can deduct part of the insurance premiums from the previous year for tax purposes. But not too early happy: The tax refund is for legal reasons often surprisingly low.
The entry of the occupational disability insurance (BU) into the tax return should not be forgotten. Policyholders can claim a portion of their contributions for tax purposes via the investment benefit . Until May 31, taxpayers have time to file their income tax return if they do it themselves. If you hand over the task to a tax consultant, you can even take your time until the end of 2015.
Disability insurance in the tax return: The maximum amount counts
How much of the annual contribution to private occupational disability insurance is actually accounted for depends on the annual deductible amount for pension costs. This is for workers at 1,900 euros and for self-employed at 2,800 euros . The precautionary expenses also include the statutory health and long-term care insurance. If the sum of the annual cost of these insurances is less than € 1,900, other insurance contributions may be deducted up to the amount of the difference from income tax.
The corresponding formula is:
– annual contributions to health insurance and long-term care insurance
= deductible contribution of additional pension expenses (eg BU) in one year
This works, at least in theory. In practice, the contributions to the health and long-term care insurance already exceed the deductible maximum amount with a gross monthly salary of approx. 2,000 euros, so that there is no longer any possibility of making a disability insurance even tax-deductible.
State-subsidized occupational disability insurance in the tax declaration
Since January 1, 2014, a state-subsidized insurance company can deduct the full contributions to private occupational disability insurance from income tax. This was decided in the context of the old-age pension improvement law (AltvVerbG).
The maximum amount of 1,900 or 2,800 euros does not matter anymore. However, this type of private occupational disability insurance is subject to the condition that a lifelong pension payment is agreed .
First tax return step by step
Especially career starters have little experience with the formalities at the tax office and are reluctant to claim the costly help of a tax consultant. With the guide to the first tax return, this hurdle can easily be mastered alone.
Complete deductibility of the BU by law?
The catch on the matter: As a rule, the private insurance BU pay only a maximum of 67 years, ie until the retirement age. An extension of the contract would be very costly for both parties. The policyholder would have to pay heavily increased contributions and the insured company would actually pay for many additional years in the event of actual incapacity. Due to this high risk, there are currently no providers who insure against occupational disability for life with state support.
Taxes are due on the BU pension
What many consumers also do not know: If the insured event actually occurs, the disability pension must be taxed. The amount of the taxes depends above all on the duration of the contract, that is, until which age the pension is paid. The rule is that the shorter the duration of the BU pension, the smaller the proportion that goes to the tax office . If the taxable total income, including the occupational disability pension, is less than the annual income tax credit (€ 8,354 for the year 2014), no taxes will be payable.
Other insurance in the tax return
In addition to tax deductible statutory insurance and private occupational disability insurance, other types of pension expense can also be claimed in the income tax return. For private accident, annuity and life insurance, the same maximum amount as for the BU must be taken into account. For insurances that fall into the category of basic provision , however, a much higher maximum amount applies. For their statutory pension insurance and their occupational pension scheme, single persons can deduct contributions for the year 2014 up to a maximum of 20,000 euros at a rate of 78 percent . This upper limit also applies to the occupational disability insurance (BUZ) if it is combined with a state-certified private pension and more than 50 percent of the contributions are used for old-age provision.