Health insurance rarely covers the cost of glasses, leaving many wondering if they can claim these expenses on their tax return. Here’s a complete guide on how to deduct the costs of glasses or contact lenses on your German tax return, including eligibility criteria and steps to maximize your tax benefits.
Can you deduct glasses from your taxes?
Yes, glasses can be deducted as a medical expense if prescribed as a medical aid. This qualifies as an "extraordinary burden" and can be claimed on your tax return, provided specific conditions are met.
Deducting glasses as an extraordinary burden
Extraordinary burdens cover a variety of personal expenses. Beyond medical treatments and nursing care, you can also claim costs for medical aids not covered by insurance, such as glasses and contact lenses.
There are two essential criteria:
Prescription requirement: A doctor must have prescribed your eyewear. However, after the initial prescription, annual eye exams from your optician are sufficient for future claims.
Exceeding the reasonable personal burden: Your costs must exceed your individually calculated reasonable burden, typically 1-7% of your income. This threshold depends on your income, marital status, and the number of dependents. Once you exceed this limit, the remaining amount can reduce your taxable income.
Example: Florian, single, no children
Annual Income: €30,000
Reasonable Burden: 6% = €1,800
Expenses:
Medication: €500
Medical Treatment: €1,200
Glasses: €600
Total Expenses: €2,300
Deductible Amount: €500 (€2,300 - €1,800)
Keep track of other potential extraordinary burdens and gather all receipts and medical documents. Enter the total in your tax return. The tax office will calculate if you’ve exceeded your reasonable burden. Any amount over this threshold will reduce your taxable income.
Deducting glasses as work-related expenses
Typically, work-related expenses must be directly related to your employment. Glasses, however, are worn for medical reasons and, therefore, don’t usually qualify as work-related expenses, even if they are for screen use. The Federal Finance Court has ruled that glasses generally don’t count as work tools.
Self-employed, it means that glasses should be deducted from personal income tax, not go to EÜR as business expense. Glasses also shouldn't appear in VAT declarations.
Exceptions:
There are two cases where glasses may qualify as work-related expenses:
Occupational eye damage: If your eyesight worsened due to work-related activities (e.g., extended screen time) or a work accident, you may be eligible to deduct the cost of glasses.
Protective glasses with prescription: If your glasses primarily protect your eyes (e.g., lab goggles) and correct your vision, they can be claimed as work-related expenses.
Can you deduct prescription sunglasses?
Prescription sunglasses can be claimed as an extraordinary burden, just like regular glasses. Self-tinting lenses also qualify. You will still need a medical prescription, and the expenses must exceed your reasonable burden for a tax deduction.
Where to enter glasses on your tax declaration
You can report glasses expenses under extraordinary burdens. If you’re filing electronically through ELSTER, you can find a section specifically for these expenses.
Extraordinary burdens: Enter the total of medical, nursing, or other extraordinary expenses, including glasses, under "Other Extraordinary Burdens" on page 3 of the main form.
Work-related expenses: Include protective glasses or eyewear primarily used for work in Schedule N under work-related expenses. If your total work expenses exceed the employee allowance of €1,230, it can further reduce your taxable income.
Simplify your tax return with Norman
Using Norman’s tax software, you can easily enter medical expenses, including glasses, through a guided form, minimizing errors and ensuring accuracy.
FAQ: Glasses and tax deductions
Can you deduct new glasses on your tax return?
Yes, as long as they are prescribed by a doctor. After the initial prescription, subsequent eye exams at an optician are acceptable. Once your expenses exceed the reasonable burden, you can claim glasses as an extraordinary burden.
How many glasses can you deduct as an extraordinary burden?
Depending on how you complete your tax return, you may be able to deduct multiple pairs of glasses. Remember, your expenses must exceed the reasonable burden before they impact your taxable income.
Can retirees deduct glasses on their taxes?
Yes, retirees can claim health-related expenses, including glasses, as extraordinary burdens. The deduction process and reasonable burden criteria are the same as those described above.
How do I deduct my new glasses?
You can deduct your new glasses as an extraordinary burden on your tax return. Use tax software like Norman, fill out the paper forms, or submit your return digitally via ELSTER. Remember, your expenses must exceed the reasonable burden to affect your taxable income.