Include car insurance in your tax return

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You can declare many special expenses in your annual income tax return and thus deduct some amounts from your tax. If you state the car insurance in your tax return, you can reduce the tax burden. However, not every contribution made by the insured person can be deducted from tax.

Lower the tax burden through car insurance.
Lower the tax burden through car insurance.

Pension expenses in the tax return

In order to reduce taxes, you cannot state all contributions in the annual declaration. The restrictions relate to the type and amount of contributions.

  • According to Section 10 of the Income Tax Act, contributions from insured persons are tax-deductible as special expenses. They are among the special expenses that are limited deductible. However, only pension expenses are deductible and not contributions to property insurance.

  • Pension expenses are expenses with which you protect yourself financially against general life risks. This is why you can, for example, make contributions to LiabilityTax, disability and others.

  • There is a fixed maximum amount for pension expenses. In 2011, for example, this maximum amount for employees without self-employment was 1,900 euros. Exceeding the maximum amount by the motor vehicle

    insurance in the tax return is not possible. Only contributions to the basic pension can lead to an increase in pension expenses.

Deduct car insurance contributions

  • The vehicle owner's liability premium can be deducted from the tax as a special expense. You can enter the annual contribution in the 'Pension expenses' annex.

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  • Many insured persons pay the liability contribution together with other contributions. However, the individual amount of the vehicle insurance is required for the tax return, because not all contributions are deductible. Therefore, at the beginning of the year, you should have a separate list of the premiums paid by the insurer.

  • On the other hand, you cannot claim the contributions to partial and fully comprehensive insurance for tax purposes, because this is property insurance. In principle, these are not tax deductible.

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