Care Lump Sum: Who Qualifies and What You Get
If you care for a relative for free, you may be eligible for a tax deduction to help offset your costs.
The Care Lump Sum is a tax benefit designed to provide financial relief for individuals who look after relatives without receiving a salary for their work.
Who it's for
This is for people who provide unpaid care for a relative. To qualify, the person you are caring for must have a recognized care degree of 2 or higher.
What you get
You can claim a tax deduction to reduce your taxable income. The amount you can deduct ranges from €600 to €1,800 per year, depending on your specific circumstances.
What it costs you
There is no direct fee to receive this benefit. To claim it, you must complete your annual tax return (Steuererklärung).
The catch to know
The most important requirement is that you must be providing this care for free. If you receive payment or a salary for the care you provide, you generally cannot claim this specific lump sum.
How to apply
- Confirm that your relative has a recognized care degree of 2 or higher.
- Keep track of your caregiving duties throughout the year.
- Include the claim when you file your annual tax return.