Itemized deductions are applicable

The following itemized deductions are applicable:
– Special expenses (Sonderausgaben), which are private ex-
penses rather than income-related expenses. German Income
Tax Law provides an exhaustive list of special expenses that,
typically, may be deducted only up to a certain maximum
amount. The following are important special expenses:
– Social insurance and similar expenses (Vorsorgeaufwend-
ungen), e. G. Pension insurance contributions or contribu-
tions to occupation-specifc retirement plans; premiums for
health and/or nursing insurances; unemployment insurance
contributions
– Alimony and maintenance payments in the case of
spouses/legal partners living separately under a decree of
divorce or legal separation
– Expenses for the taxpayer’s vocational education
– Expenses incurred when a child entitled to tax-exempt
child benefts (Kindergeld) attends specifc schools
– Expenses for childcare
– Donations/membership dues for nonproft organizations or
political parties
– Extraordinary expenses (außergewöhnliche Belastungen):
When a taxpayer incurs unusually high, unavoidable expenses
due to extraordinary circumstances or hardship, relief may
be granted by allowing as a deduction the excess of such
expenses over a “reasonable burden”. The defnition of a
reasonable burden is based on the net income before special
expenses and on the number of children, and ranges from
1% to 7% of net income before special expenses. Certain
expenses may be allowed, subject to an absolute rather than
a percentage of income limitation.
– Moreover, additional allowances may apply in retirement
situations, when specifc payments are privileged due to a
systematic change in the taxation of pensions.
– Foreign income taxes that do not qualify for foreign tax credit
treatment or when a deduction is elected instead of tax
credit.