Claim dental supplementary insurance as a tax deduction

A good dental insurance policy protects you from high costs, but did you know that you can get part of your contributions back from the tax office? Many policyholders miss out on this opportunity because the rules seem complex. We’ll show you how to claim dental insurance as a tax deduction and what really matters.

Basics: How the tax office treats your insurance

Contributions for dental supplementary insurance are treated for tax purposes as “other precautionary expenses” in accordance with Section ten of the Income Tax Act (EStG). They therefore fall into the same category as, for example, contributions to liability or accident insurance. The tax office clearly distinguishes these from contributions to basic, health and long-term care insurance, which are almost always fully deductible. However, there are strict annual limits for other precautionary expenses, which often restrict the tax benefit. Understanding this system is the first step in assessing your potential tax savings. Correct classification is crucial for the next steps in your insurance and tax.

This distinction is the reason why deductibility does not automatically lead to a direct tax refund in every case. It depends on how much “room” remains below the statutory maximum amounts after your primary insurance contributions have been taken into account.

Limiting factor: The annual maximum amounts

The decisive factor in deductibility is the statutory maximum amounts for other insurance expenses. For employees, civil servants and pensioners, this limit is EUR 1,900 per year. Self-employed people who pay their health insurance contributions in full themselves can claim up to EUR 2,800. In most cases, these amounts are already fully used up by contributions to statutory health and long-term care insurance alone. An employee with a gross income of EUR 45,000 already pays more than EUR 4,000 a year for health insurance alone and therefore easily reaches the maximum amount. Therefore, declaring supplementary dental insurance often results in no additional tax saving for many taxpayers.

For married couples who are assessed jointly, the maximum amounts are doubled accordingly to EUR 3,800 (both employed) or up to EUR 5,600 (both self-employed). Despite the higher limits, the challenge remains the same, as the joint contributions to basic cover are correspondingly higher. A precise review of which insurance policies are tax-deductible is therefore essential.

Practical scenarios: Four cases where a write-off is worthwhile

Although the maximum limits present an obstacle, there are four typical scenarios in which you can claim your dental supplementary insurance for tax purposes. Low earners and those insured free of charge often benefit in particular. In these cases, the contributions for basic cover are so low that the maximum limit of 1,900 euros is not reached.

Here are four examples in which tax relief is likely to apply:

• Students: They often pay reduced health insurance contributions, leaving room for supplementary insurance below the maximum limit of 1,900 euros.
• Family members insured free of charge: Spouses or children who are co-insured with the statutory health insurance provider do not pay their own contributions and can use the full maximum limit for their private supplementary insurance.
• Civil servants entitled to allowances: Since the allowance covers a large portion of medical expenses, contributions to private health insurance are often low enough not to exceed the threshold.
• Mini-job workers: Anyone in a mini-job who pays flat-rate social insurance contributions may also have individual pension-related expenses below the 1,900-euro limit.

These examples show that a blanket statement is not possible and that an individual review is always worthwhile.

Expert tips for correctly entering information in the tax return

Correct information in your tax return is crucial to preserve the chance of tax savings. The contributions to dental supplementary insurance belong in the „Anlage Vorsorgeaufwand“. The tax office needs this information to check the deductible amounts, even if no refund is ultimately due. Incorrect entries can lead to queries or an incorrect calculation.

Here is how to enter the values correctly:

• Statutorily insured persons: Use line 22 of the Anlage Vorsorgeaufwand for „Contributions to health insurance that exceed basic cover“.
• Privately insured persons: Line 27 is intended for them to enter the contributions for optional and supplementary benefits.
• Check data transmission: Contributions to basic health and long-term care insurance are transmitted electronically to the tax office directly by your health insurance provider.

Our expert tip: Request a certificate of the contributions paid from your insurer for the tax office. Many insurers now provide this automatically in the customer portal. This document lists the deductible optional and supplementary benefits separately and makes it much easier for you to enter them. This ensures that you know where the insurance policies should be entered.

Legal Framework and Optimisation Strategies

The tax treatment of pension expenses is governed by section ten of the Income Tax Act (EStG). This Act defines precisely which expenses count towards basic provision and which are regarded as “other” expenses. Case law, for example rulings by the Federal Fiscal Court, regularly confirms that purely comfort- or optional benefits such as a private supplementary dental insurance policy do not count as tax-favoured basic cover. As a result, these costs can only be taken into account within the limits of the applicable maximum amounts.

Our expert tip: If you are privately insured, check the structure of your tariff. Some contracts combine basic and supplementary benefits. Ask your insurer for a breakdown of the premium components. Only then can you ensure that the basic portion is correctly applied in full and the supplementary portion is taken into account within the maximum amounts. A clear separation is crucial for maximising your tax savings.

Conclusion: Sensible protection with a potential tax benefit

The ability to claim dental supplementary insurance as a tax deduction is a welcome bonus, but should not be the main reason for taking out a policy. Its primary value lies in protection against high out-of-pocket costs, which can quickly run into several thousand euros. For most employees on an average income, claiming the deduction does not lead to a direct tax refund because the maximum thresholds have already been used up. Nevertheless, certain groups such as students, those covered by family insurance or civil servants benefit noticeably. Regardless of the tax effect, it is always advisable to declare the premiums on your tax return. The tax office checks the allowance automatically, so you will not be at a disadvantage. The real question is not what dental supplementary insurance costs, but what financial protection it provides.

Ultimately, protecting your dental health is an important investment in your well-being. The potential tax advantage is a welcome side benefit that rounds off your financial planning.