Permanently Tax-Exempt Cash Bonus Awarded: This bonus is now exempt from all tax deductions.
Health Bonuses Under €150 a Year Remain Tax-Free, Permanently! 👩⚕️💰
Got a bonus from your health insurer for being health-conscious? You're in luck! Since the Annual Tax Act 2024, these bonuses up to €150 a year are now permanently tax-free! 🎉💔
This means the bonuses associated with preventive measures, like fitness studio classes, and sports club memberships won't cost you extra on your tax bill. What's more, this includes incentives for things like osteopathy treatments – as long as they're not refunds of contributions.
💸 Contribution Refunds
Remember those times your health insurer gave you back some of your contributions because you didn't use certain services? The tax office will be on your case for that! You'll need to declare these refunds in your annual tax return alongside proof. Insurance contributions are considered precautionary expenses, so the tax office will take into account your actual payments. But hey, your bonuses up to €150? That's on the house! 🤑
👨⚖️ Federal Finance Court Decision
Back in Case No. X R 16/18, the Federal Finance Court ruled that refunds for health measures not covered by standard insurance packages, such as osteopathy treatments, are not considered as refunds of contributions.
💪 Simplification Regulation
In 2023, the Federal Ministry of Finance made it clear that tax offices must continue to apply the simplification regulation upon health bonuses up to €150, making them tax-free, until the end of 2024.
💸 Bonuses Over €150
Unfortunately, the tax office has its limits: All bonus payments exceeding €150 a year must generally be declared as taxable refunds of contributions.
🏆 An Exception for the Extra Healthy
If you receive more than €150 a year as bonus for being health-conscious from your health insurer, consider yourself lucky! You can prove to the tax office that the amount exceeding the limit is not a refund of contributions, ensuring any extra bonus won't get taxed! 💰🏆
For more on this, check out Deadline 15.12: This Time Trap Now Threatens Investors with Stock Losses 📈 investing Alert! 📈
[Sources omitted for brevity] 🔎 Smart Digging for More Info 🔎
The tax-free bonuses include those linked to fitness studio classes and sports club memberships, as they fall under the category of 'fitness-and-exercise'. Moreover, the exemption applies to incentives for osteopathy treatments, making them part of the health-and-wellness area that remains tax-free.
