The recognition of a reasonable burden in the tax consideration of medical expenses as an extraordinary burden in accordance with Section 33 of the Income Tax Act is unconstitutional. This is the opinion of Lars M. Petrak, lawyer and tax law specialist from the law firm Dienst, Schneider & Partner GbR in Koblenz, in the May 2011 issue of WISO-SteuerBrief.



According to Petrak, the recognition of a reasonable burden means that statutory co-payments within the scope of health insurance and other medical costs not covered by the insurance (e.g. dentures) do not have a full tax effect. This is a deduction restriction (in the amount of the reasonable burden). However, the Federal Constitutional Court has now ruled in various decisions that the minimum subsistence level must remain tax-free in the amount of the basic tax-free allowance plus individual special expenses and extraordinary burdens.



The WISO-SteuerBrief therefore recommends that affected taxpayers claim all medical expenses for tax purposes and appeal against rejected tax assessments. In doing so, they can refer to the test case conducted at the Rhineland-Palatinate tax court with the file number 4 K 1970/10.



Tip: WISO-Steuer Brief has also formulated a sample objection in the May issue. Interested parties can request this issue free of charge here



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