Correctly enter insurance in the tax return and leverage savings potential
26 Mar 2025
10
Minutes
Katrin Straub
CEO at nextsure
The tax return is due and you're wondering where to enter your insurance in the tax return to save money? Many insurance premiums are deductible, but correct allocation is crucial. This article shows you how to optimally claim your insurance.
The topic in brief and concise terms
Most insurance policies are entered in the Vorsorgeaufwand annex; professional policies in Annex N.
For other precautionary expenses, maximum amounts apply (e.g., 1,900 euros for employees), which are often reached through health/long-term care insurance.
Retirement provision expenses (e.g. Rürup pension) are deductible as special expenses up to 27,566 euros (single, 2024).
Overview: Insurance and its tax treatment
Many insurance contributions can reduce your tax burden if you know where to list them in the tax return. In general, the tax office distinguishes between precautionary expenses and deductible expenses. Most private insurances that serve personal security are classified as precautionary expenses and are to be entered in the Annex Vorsorgeaufwand. This includes, for example, contributions to health and nursing care insurance, as well as certain liability and accident insurances. For 2024, up to 27,566 euros can be claimed for retirement provision expenses for single individuals. Professional-related insurances, on the other hand, can be deducted as deductible expenses in Annex N. It is important to understand this distinction to maximize all potential savings.
Declare pension expenses correctly in the pension expense annex
The section on pension expenses is the central place to claim your contributions for security on your tax return. Here, you include, for example, your contributions to statutory pension, health, nursing care, and unemployment insurance. Private basic health and nursing care insurances also belong here and are often fully deductible. For other pension expenses, such as private liability, accident, or disability insurance, there are maximum amounts: 1,900 euros for employees and civil servants, 2,800 euros for self-employed individuals. This limit is often already reached by contributions to health and nursing care insurance. Therefore, carefully check which contributions you can claim. Providing correct information about your retirement provisions is also crucial here. Contributions to the Riester pension, however, belong in the separate AV section. Correctly entering these insurances on your tax return is an important step towards tax savings.
Practice examples: How to list common insurances
To make the topic more tangible, here are some practical examples of where specific insurances should be entered in the tax return. The motor vehicle liability insurance is entered as precautionary expenses in the pension expenses section (lines 46-50 for other precautionary expenses). A private liability insurance is also recorded there. If you have taken out disability insurance, the contributions must also be indicated in the pension expenses section. 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 euros annually for private liability insurance and 600 euros for disability insurance. He can deduct these 750 euros in addition to his health insurance contributions up to the maximum amount of 1,900 euros. Please note that property insurances such as household contents or private legal protection insurance are generally not deductible. Unless there is a professional connection.
Here is a list of where common insurances are primarily entered:
Statutory health and long-term care insurance: Pension expenses section (lines 11-22)
Private health and long-term care insurance (basic coverage): Pension expenses section (lines 23-30)
Unemployment insurance: Pension expenses section (line 45)
Private liability insurance: Pension expenses section (lines 46-50)
Motor vehicle liability insurance: Pension expenses section (lines 46-50)
Accident insurance: Pension expenses section (lines 46-50), possibly partially as advertising costs in section N
Disability insurance: Pension expenses section (lines 46-50)
Risk life insurance: Pension expenses section (lines 46-50)
These allocations help you to correctly place your insurances in the tax return.
Advertising costs: Use professional insurance in Attachment N
In addition to pension provisions, certain insurances can be claimed as business expenses on form N if they have a clear professional connection. This includes, for example, professional liability insurance, a purely occupational accident insurance, or the employment protection component of a legal expenses insurance. The advantage: For business expenses, there are no maximum limits like there are for other pension provisions. Every euro that exceeds the employee allowance of 1,230 euros (as of 2024) reduces your taxable income. A thorough check to see whether an insurance policy is professionally induced can therefore be worthwhile. If an insurance policy covers both private and professional risks, the contribution must be allocated accordingly. The tax office often requires a certificate from the insurer about the professional portion. Knowing where to enter these special insurances on the tax return is worth its weight in gold.
Special cases and expert tips for maximum tax savings
There are specific considerations for certain types of insurance and life situations when entering them into the tax declaration. Contributions to Riester pension contracts, for example, are declared in Annex AV to optimally utilize government subsidies and the special expenses deduction. For Rürup pensions (basic pensions), since 2023, 100 percent of the contributions (up to a maximum amount of 27,566 euros for singles in 2024) are deductible as retirement provision expenses in Annex Vorsorgeaufwand. Life insurance policies taken out before 2005 may also be claimed as other retirement expenses under certain circumstances. Our expert tip: Keep all contribution certificates for your insurance carefully, even though no documents have to be submitted directly with the tax return since the obligation to retain evidence was abolished. The tax office can request these up to ten years later. According to § 10 of the Income Tax Act (EStG), retirement provision expenses are defined as special expenses that are neither business expenses nor advertising costs. A unit-linked pension insurance can also be tax-relevant depending on the contract arrangement. Understanding these details is crucial to making the most of all possibilities when entering your insurance in the tax declaration.
Avoid non-deductible insurance and common mistakes
Not every type of insurance can be deducted from your taxes. Purely material insurances like household insurance (exception: a home office used for work), private legal protection insurance (exception: the employment legal protection component), or comprehensive insurance for private vehicles are generally not deductible. A common mistake is entering these policies in the hope of tax savings. Also, whole life insurance policies taken out after 31 December 2004 are usually considered investments and are not deductible as pension expenses. Do not confuse car liability insurance (deductible) with comprehensive car insurance (not deductible for private individuals). Another pitfall is exceeding the maximum limits for other pension expenses of 1,900 euros or 2,800 euros, as these are often already reached by health and nursing care insurance contributions. Careful examination of which insurances are actually deductible helps prevent incorrect entries. If you are unsure where certain insurances should be entered on your tax return, professional assistance may be beneficial.
The following insurances are typically not deductible, or only under specific conditions:
Household insurance (exception: partially for a tax-recognised home office)
Residential building insurance (exception: for rental purposes or a home office)
Private legal protection insurance (exception: included employment legal protection as business expenses)
Comprehensive vehicle insurance (for private vehicles)
Travel baggage insurance
Pet health insurance (exception: guide dog or similar)
Whole life insurances (new contracts from 2005)
Knowing about these exclusions helps to avoid errors when completing your tax return.
Using digital helpers and professional support
The question of where to list insurance in the tax return can be complex. Digital tax programs or ELSTER, the official portal of the tax authorities, often offer assistance and guide you step-by-step through the forms. Many programs transfer data from the previous year or offer a plausibility check, which can reduce the error rate by up to 20 percent. However, this does not replace personal understanding of the regulations. In more complex cases, multiple sources of income, or uncertainties regarding the deductibility of certain niche insurances, such as a cyber insurance with professional relevance, consulting a wage tax assistance association or tax advisor can be advisable. These experts are familiar with the current legal situation and can highlight individual savings potentials that may have been overlooked. An investment in professional help can often pay for itself in the first year through a higher tax refund. Remember that nextsure is here for you as a digital insurance portal to keep track of your contracts, making it easier to prepare your tax return.
Optimise your individual situation
More useful links
The Federal Ministry of Finance offers 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 VLH (Vereinigte Lohnsteuerhilfe e.V.) offers useful tips on which insurances are tax-deductible.
FAQ
Where are insurances recorded in the tax return?
Most private insurance for retirement provisions (health, nursing care, liability, accident, disability) is recorded in the retirement provision section. Profession-related insurance (e.g., professional liability) is included as deductible business expenses in the section N. Riester pension contributions are entered in section AV.
Which insurances are actually tax-deductible?
Deductible expenses primarily include precautionary contributions such as health and long-term care insurance (basic), unemployment insurance, liability insurance, accident and disability insurance, as well as retirement contributions (e.g., statutory pension, Rürup, Riester). Work-related insurance can be deducted as business expenses.
What is the difference between deductible expenses and special expenses for insurance?
Special expenses (usually entered in the pension expenses section) are private expenditure for provisions that receive tax benefits, often with maximum limits. Income-related expenses (section N) are professional expenses and can generally be deducted without limit, provided they exceed the employee lump sum amount.
Can I deduct my household insurance from tax?
Generally, no. Household insurance is a property insurance and does not count as deductible preventive expenses. An exception exists if you have a tax-recognized home office; in that case, a portion of the costs can be deductible as business expenses or operating expenses.
Do I need to submit evidence for my insurance contributions with the tax return?
No, since the introduction of the obligation to retain receipts, you no longer need to submit them directly with the tax return. However, the tax office may request the documentation if necessary. Therefore, you should carefully keep all relevant documents and contribution certificates.
Where do I enter dental insurance in the tax return?
Contributions to supplementary dental insurance can be entered as other precautionary expenses in the form Vorsorgeaufwand, provided that the maximum amount of 1,900 euros (for employees) or 2,800 euros (for self-employed) has not yet been exhausted by other insurances such as basic health and long-term care insurance.
