Tax deduction: Airpods, briefcase, cleaning as business expenses

The weather is nice, the sun is shining—what could be better than taking care of your tax return? But seriously, time is running out. Your 2024 income tax return must be received by the tax office by July 31, or you risk reminders and fees.

Many taxpayers can deduct more than they think. And there are also some curious things. Six tax tricks to save and smile:

Anyone who washes their own work clothes can deduct the costs from their taxes. You can enter empirical values ​​for each wash cycle; for example, the WiSo tax software calculates 76 cents for one kilogram of colored laundry, 41 cents for the dryer, and 7 cents for ironing. If you take the clothes to the dry cleaners, the costs can also be claimed as tax-deductible expenses on form N. But be careful, blazers, shirts, and suits do not fall under the category of work clothes. This refers only to items of clothing that can be worn exclusively at work, such as uniforms or protective clothing.

Bluetooth headphones, such as Apple's expensive AirPods, have become standard equipment for many office workers since the widespread introduction of video conferencing during the coronavirus pandemic. If the earbuds are used more than 90 percent for work, the entire purchase price can be claimed as a business expense on your tax return – depending on the model, this can amount to several hundred euros. Those who also use their AirPods for personal use can typically claim 50 percent of the purchase price.

Even an expensive luxury briefcase can be deducted from taxes. Like AirPods, it is considered a so-called low-value asset (LVA), which, including VAT, cannot cost more than €952. Furthermore, according to the Income Tax Act, a LVA must be movable, depreciable, and independently usable. All of this applies to a briefcase. If it costs less than €952, taxpayers can claim the full price as a business expense. If it is more expensive, it must be depreciated over several years.

In some German states, pet liability insurance for dogs and horses is mandatory, but consumer advocates recommend it for all pet owners. Depending on the plan, the cost ranges from €25 to €100 per year – which can be deducted from taxes as special expenses.

Anyone who has their dog walked by a dog walking service can deduct these costs as a household-related service. The only important thing is that the dog is picked up and returned from the owner's home. Pet sitting costs can also be claimed as a tax deduction if the service takes place in the home. Payments to dog boarding facilities, however, are not deductible.

What's special about the tax relief for household services is that 20 percent of the costs are deducted directly from the tax liability – up to a maximum of €4,000 per year. So, if you pay €50 for a dog-walking service, you'll get €10 back as a flat rate with your tax return. This also applies to household services like a cleaning service.

When grandparents look after their grandchildren, they usually don't receive any compensation. However, they may incur costs for longer journeys. If these costs are reimbursed by the parents, they can be claimed as special expenses for tax purposes. A flat rate of 30 cents per kilometer traveled applies. However, a contract must be in place between the parents and grandparents that regulates childcare and reimbursement of travel expenses. Furthermore, the travel expenses must be transferred to the grandparents so that they can be presented to the tax office as a bank statement in case of doubt. This regulation applies to the care of children up to the age of 14.