Deduct your extraordinary expenses from your tax return in Luxembourg
As extraordinary expenses, you can deduct the following expenses :
- Domestic staff expenses (employed person, service vouchers,…) ;
- Childcare expenses (employed person or nurseries, day-care centers, childcare school facilities,…) ;
- The costs of a home support worker because of your state of depency or the one of your spouse or legal partner.
These expenses are deductible provided that the persons engaged or bodies are validly approved and declared to the legally compulsory social security.
If you are a crossborder resident and you are tax assimilated to a resident in Luxembourg, you can call on persons or organizations validly authorized in the European Union.
How do you deduct extraordinary expenses?
On presentation of the relevant supporting documents, the sum of these costs above may be deducted either :
1 | At a flat rate :
You can deduct up to €5,400.00 per tax year (€450,00 per month) ;
2 | Based on actual costs :
According to proofs of expenses, the following costs may be taken into account :
- costs mentioned above ;
- sickness costs not taken in charge by a social security fund ;
- maintenance costs of parents without resources or in need ;
- alimony payments ;
- lawyers’fees in case of divorce ;
- funeral expenses not covered by a death fund or the deceased’s assets ;
- expenditure arising from a change of employer ;
These expenses are deductible provided :
- that they are unavoidable ;
- that they significantly reduce your contributing ability.
This last condition can be considered fulfilled provided that these expenses exceed a certain percentage of your taxable income depending on your marital status (single or married/legal partnership) and the number of children at your own charge.
The costs of maintenance, education or vocational training of children who are not part of your household and mainly dependent on you can be deducted only flat rate up to max. €4,020.00 per child per tax year.
On presentation of the medical certificate defining your rate of working disability, a progressive flat-rate allowance is provided for disability reasons.