Question about criteria applicable for double household tax relief

[Strakurinn 11]

I hope that someone with similar case as mine, or with experience in the topic, could help me to understand what is the criteria that must be met in order to request a tax relief in connection to having a double household.  My situation is the following:

 

My family and me had been living in Germany for many years.  Due to family reasons, in 2021 we took the decision to relocate back to my spouse's home country.  My wife and children moved away after the last school year ended in the summer 2021; they deregistered from our address in Germany and registered in our new country.  We moved almost all our household belongings (furniture, personal effects, etc.) at the time using an international moving company.  In the meantime, I continue residing in Germany due to professional commitments (my plan is to also move away in a couple of months once my employment contract ends).  I live in a rented house and my family lives abroad in a house we own but still pay mortgage for.

 

Since my family left in the summer of 2021, we have been travelling (air travel) back and forth between both countries in order to visit each other periodically and stay connected as a family. My wife did not work while residing in Germany but she started to work after moving abroad last summer.  I only have income from my employer so I have been taking care of doing a joint tax return in previous years as it was a pretty straight-forward tax return to file.  Now I need to do the tax return for year 2021 and wondered if I can claim some of the moving  and travel expenses under the "double household" concept. All in all, including the move abroad and all the travel back and forth, I have spent approximately €10K in 2021 due to this situation.

 

My questions are:

 

1) Does my situation fulfill the criteria to apply for tax deductions under the double household concept?

2) What expenses can be (fully or partially) claimed back?  Air travel? Moving expenses (packing and transportation)? Other (for example rent in Germany as I need to stay here for the purpose of working)?

3) Which section (Anlage) of the tax return do I need to fill out to apply for double household tax relief?

4) If you are someone who has gone through it, can you share your opinion if it is worthy to go through the hassle in comparison to the tax break one receives?  

 

Thank you in advance to all those that reply.  Much appreciated!

[PandaMunich 15,899]

On 5/8/2022, 7:50:46, Strakurinn said:

1) Does my situation fulfill the criteria to apply for tax deductions under the double household concept?

Since the new BFH rulings, that now allow "doppelte Haushaltsführung" even in a Wegzug case like yours, when your family moved away from the city of your workplace, yes.

If the Finanzamt gets difficult, send them this: https://www.haufe.de/finance/haufe-finance-office-premium/doppelte-haushaltsfuehrung-153-beruflicher-zweithaushalt-in-wegzugsfaellen_idesk_PI20354_HI2540391.html

 

On 5/8/2022, 7:50:46, Strakurinn said:

2) What expenses can be (fully or partially) claimed back?  Air travel? Moving expenses (packing and transportation)? Other (for example rent in Germany as I need to stay here for the purpose of working)?

Air travel for visits to family, up to 1,000€ warm rent per month for your German house and 28€ per day Verpflegungsmehraufwand for the first 3 months after your family moved away.

If the Finanzamt gets difficult about you claiming for the ca. 90 day * 28€ Verpflegungsmehraufwand in line 112 of Anlage N, send them this and mark the headline "Verpflegungspauschale in Wegverlegungsfällen": https://www.haufe.de/personal/haufe-personal-office-platin/doppelte-haushaltsfuehrung-2-wegverlegungsfaelle_idesk_PI42323_HI2761957.html

You cannot claim for the moving expenses of your family.

Please also read this: https://www-finanztip-de.translate.goog/doppelte-haushaltsfuehrung/?_x_tr_sl=de&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp

 

On 5/8/2022, 7:50:46, Strakurinn said:

3) Which section (Anlage) of the tax return do I need to fill out to apply for double household tax relief?

Page 4 of Anlage N: https://www.steuerklassen.com/content/anlage_n_2021.pdf