Correctly declare insurance on your tax return and make use of savings potential
26.03.25
4
Minutes
Katrin Straub
Managing Director at nextsure
Your tax return is due and you’re wondering where to enter your insurance in your tax return to save money? Many insurance premiums are tax-deductible, but correct allocation is crucial. This article shows you how to claim your insurance in the best possible way.
The topic in brief and concise terms
Most insurance policies are entered in the Vorsorgeaufwand schedule; occupational policies in Schedule N.
For other provision expenses, maximum limits apply (e.g. EUR 1,900 for employees), which are often already reached by health and long-term care insurance contributions.
Retirement provision contributions (e.g. Rürup pension) are tax-deductible as special expenses up to €27,566 (single people, 2024).
Overview: Insurance and their tax treatment
Many insurance contributions can reduce your tax burden if you know where to enter them in your tax return. In principle, the tax office distinguishes between pension expenses and work-related expenses. Most private insurance policies that serve personal protection fall under pension expenses and are entered in the pension expenses appendix. This includes, for example, contributions to health and long-term care insurance as well as certain liability and accident insurance policies. For the year 2024, up to 27,566 euros can be claimed for retirement provision expenses for single individuals. Insurance policies taken out for work-related reasons, on the other hand, can be deducted as work-related expenses in Appendix N. It is important to understand this distinction in order to make full use of all potential savings.
Correctly declare pension-related expenses in the pension expenses annex
The special expenses for retirement provision are the central place to claim contributions for your insurance cover for tax purposes. Here, for example, you enter your contributions to statutory pension, health, long-term care and unemployment insurance. Private basic health and long-term care insurance also belong here and are often deductible in full. For other retirement provision expenses, such as private liability, accident or occupational disability insurance, there are maximum amounts: 1,900 euros for employees and civil servants, 2,800 euros for the self-employed. This limit is often already used up by contributions to health and long-term care insurance. So check carefully which contributions you can claim. Correctly declaring your retirement provision is also crucial here. Contributions to the Riester pension, on the other hand, belong in the separate AV schedule. Correctly entering these insurance policies in your tax return is an important step towards reducing your tax bill.
Practical examples: How to enter common insurance policies
To make the topic more tangible, here are a few practical examples showing where specific insurance policies are entered in the tax return. Motor vehicle liability insurance belongs as precautionary expenses in the schedule for precautionary expenses (lines 46-50 for other precautionary expenses). A private liability insurance policy is also entered there. If you have taken out occupational disability insurance, the contributions must also be declared in the schedule for precautionary expenses. The same applies to supplementary dental insurance, provided the maximum amount for other precautionary expenses has not yet been reached. A typical case: an employee pays €150 a year for private liability insurance and €600 for occupational disability insurance. He can deduct these €750 in addition to his health insurance contributions, up to the maximum amount of €1,900. Note that property insurance such as household contents insurance or private legal expenses insurance is generally not tax-deductible. Unless there is a professional connection.
Here is a list showing where common insurance policies are usually entered:
Statutory health and long-term care insurance: schedule for precautionary expenses (lines 11-22)
Private health and long-term care insurance (basic cover): schedule for precautionary expenses (lines 23-30)
Unemployment insurance: schedule for precautionary expenses (line 45)
Private liability insurance: schedule for precautionary expenses (lines 46-50)
Motor vehicle liability insurance: schedule for precautionary expenses (lines 46-50)
Accident insurance: schedule for precautionary expenses (lines 46-50), possibly pro rata as employment expenses in Schedule N
Occupational disability insurance: schedule for precautionary expenses (lines 46-50)
Term life insurance: schedule for precautionary expenses (lines 46-50)
These allocations help you place your insurance policies correctly in your tax return.
Work-related expenses: claiming professional insurance in Annex N
In addition to pension expenses, certain insurance policies can be claimed as employment expenses in Schedule N if they have a clear professional connection. These include, for example, professional indemnity insurance, purely occupational accident insurance or the employment-law protection element of legal expenses insurance. The advantage: there are no upper limits for employment expenses, unlike other pension expenses. Every euro that exceeds the employee allowance of 1,230 euros (as at 2024) reduces your taxable income. A precise check of whether an insurance policy is work-related can therefore be worthwhile. If a policy covers both private and professional risks, the premium must be apportioned accordingly. The tax office often requires a certificate from the insurer showing the professional portion. Knowing where to enter these special insurance policies in your tax return is worth real money.
Special cases and expert tips for maximum tax savings
There are special rules for entering certain types of insurance and life situations in your tax return. Contributions to Riester pension contracts, for example, are declared in Annex AV to make the best possible use of state allowances and the special expense deduction. For Rürup pensions (basic pensions), it has applied since 2023 that 100 per cent of contributions (up to the maximum amount of 27,566 euros for single persons in 2024) are deductible as retirement provision expenses in the Annex Vorsorgeaufwand. Life insurance policies taken out before 2005 may also, under certain circumstances, be claimed as other provision expenses. Our expert tip: Keep all contribution certificates from your insurance policies carefully, even though, since the document retention requirement, supporting documents no longer have to be submitted directly with your tax return. The tax office can request these up to ten years later. In accordance with Section 10 of the Income Tax Act (EStG), provision expenses are defined as special expenses that are neither business expenses nor employment-related expenses. A unit-linked pension insurance policy may also be tax-relevant depending on how the contract is structured. Understanding these details is crucial if you want to make full use of all available options when entering your insurance policies in your tax return.
Avoid non-deductible insurance and common mistakes
Not every insurance policy can be deducted from tax. Pure property insurance policies such as contents insurance (exception: a home office used for professional purposes), private legal expenses insurance (exception: portion for employment law protection) or comprehensive insurance for a private car are generally not deductible. A common mistake is to enter these policies in the hope of saving tax. Capital life insurance policies concluded after 31 December 2004 are also usually treated as investments and cannot usually be claimed as deductible precautionary expenses. Do not confuse motor vehicle liability insurance (deductible) with comprehensive motor insurance (not deductible for private individuals). Another pitfall is exceeding the maximum amounts for other precautionary expenses of 1,900 euros or 2,800 euros, as these are often already reached by health and long-term care insurance contributions. A careful review of which insurance policies are actually deductible protects you from incorrect entries. If you are unsure where certain insurance policies should be entered in your tax return, professional support can be worthwhile.
The following insurance policies are typically not deductible, or are deductible only under certain conditions:
Contents insurance (exception: pro rata for a tax-recognised home office)
Buildings insurance (exception: when rented out or if there is a home office)
Private legal expenses insurance (exception: included employment law protection as work-related expenses)
Comprehensive motor insurance (for private vehicles)
Travel baggage insurance
Pet health insurance (exception: guide dog or similar)
Capital life insurance policies (new contracts from 2005)
Knowing these exclusions helps avoid errors when completing your tax return.
The question of where insurance policies should be entered in the tax return can be complex. Digital tax software or ELSTER, the official portal of the tax authorities, often provide assistance and guide you step by step through the forms. Many programmes transfer data from the previous year or offer a plausibility check, which can reduce the error rate by up to 20 per cent. Nevertheless, this does not replace your own understanding of the rules. In more complex cases, with multiple sources of income or uncertainty regarding the deductibility of certain niche insurance policies, such as cyber insurance with a work-related connection, advice from a tax assistance association or tax adviser can be useful. These experts know the current legal situation and can point out individual savings potential that may perhaps have been overlooked. An investment in professional help can often pay for itself through a higher tax refund, sometimes in the very first year. Bear in mind that nextsure is there for you as a digital insurance portal to help you keep track of your policies, which makes preparing your tax return easier.
Optimise your individual situation
The correct declaration of your insurance policies in your tax return is an important building block for your financial optimisation. It turns out that knowing where to enter insurance policies in your tax return is worth real money. Take the time to carefully review your documents and correctly assign the relevant items in the supplementary pension expenses schedule, Schedule N or Schedule AV. This can reduce your tax burden by several hundred euros per year. With the information and tips provided here, you are well equipped to get the maximum out of your deductible insurance contributions. We would be happy to provide you with a tailored analysis of your insurance situation and concrete optimisation suggestions.
Request your individual risk analysis now: Have your insurance situation reviewed free of charge and receive concrete optimisation suggestions.
More useful links
The Federal Ministry of Finance provides detailed information on the taxation of retirement income in Germany.
Destatis, the Federal Statistical Office, publishes relevant press releases and data.
The German Pension Insurance provides comprehensive information on tax law for insured persons and pensioners.
The Federal Government provides information on important aspects of pension contributions.
The Federal Ministry of Health explains the financing of statutory health insurance (GKV).
The Vereinigte Lohnsteuerhilfe e.V. (VLH) offers useful guidance on which insurance policies can be claimed for tax purposes.
FAQ
Where are insurance premiums entered in the tax return?
Most insurance policies for private provision (health, long-term care, liability, accident, loss of earnings capacity) are entered in the annex for retirement provision expenses. Insurance policies related to employment (e.g. professional liability insurance) belong as employment expenses in Annex N. Riester pension contributions go in Annex AV.
Which insurance policies are actually tax-deductible?
Primarily deductible are provision expenses such as contributions to health and long-term care insurance (basic), unemployment insurance, personal liability insurance, accident and disability insurance, as well as retirement contributions (e.g. statutory pension, Rürup, Riester). Work-related insurance policies are deductible as income-related expenses.
What is the difference between income-related expenses and special expenses for insurance?
Special expenses (usually Annex Vorsorgeaufwand) are private expenses for provision for old age that receive tax relief, often subject to maximum amounts. Work-related expenses (Annex N) are expenses incurred for professional reasons and can generally be deducted without limit, provided they exceed the employee lump sum allowance.
Can I deduct my contents insurance from my taxes?
As a rule, no. Contents insurance is a property insurance policy and does not count as deductible provision expenses. There is an exception if you have a home office that is recognised for tax purposes; in that case, a portion of the costs may be deductible as employment expenses or business expenses.
Do I need to submit proof of my insurance contributions with my tax return?
No, since the introduction of the receipt retention requirement, you no longer have to submit the receipts directly with your tax return. However, the tax office can request the supporting documents if necessary. Therefore, you should keep all relevant documents and contribution certificates carefully.
Where do I enter supplementary dental insurance in my tax return?
Contributions to supplementary dental insurance can be entered as other precautionary expenses in the Vorsorgeaufwand schedule, provided the maximum amount of EUR 1,900 (for employees) or EUR 2,800 (for self-employed persons) has not already been exhausted by other insurance policies such as basic health insurance and long-term care insurance.
