If you have made losses on past years, i.e. you had more expenses than income, you can carry forward these losses to later years and deduct them here.
If you pay alimony and/or child support to your ex, you can deduct 80% from your income.
Maintenance paid can be deducted up to 80% if
- you have a legal obligation under the civil code (or an analogous rule abroad) or under a court order to pay maintenance to an ex, (grand)children, (grand)parents, parents-in-law or children-in-law;
- the beneficiary is destitute;
- they don’t live with you;
- you pay regularly and the sums aren’t excessive.
You need to identify the person who receives the maintenance on p. 3 of your paper tax return. The tax authorities have warned they are going to pay particular attention to payments made to beneficiaries in other countries.
Some planning opportunities
When one parent pays maintenance, she can take an 80% deduction for her payments if the children are domiciled with the other parent. However, she gets no allowance for dependents; the other parent will be entitled to the full allowance. They both pay less taxes, €100 paid in maintenance gives a tax reduction of about €40.
Eighty percent of all alimony payments made in respect of any support obligation under the Civil or Judicial Code is deductible. Such support obligation exists, for example, for children, parents, grandparents, spouse or ex-spouse.
For alimony payments to be deductible, the following conditions must be met (article 104(1) of the ITC):
- the person to whom one is paying the alimony must be entitled to support pursuant to the provisions of the Civil or Judicial Code;
- the payee must be destitute;
- the payee must live at another location than the taxpayer making the payments; and
- the sums paid must not be excessive.
Your Tax Return :
- the Guide
- Is this your first time?
- Couples and Children
- When do I need to file?
- on Paper or Online?
- Filing Online
- Filing on Paper
- Box I – Contact Details and Bank Account
- Box II – Your Family Situation
- Box III – Real Estate
- Box IV – Earnings
- Box V – Pensions
- Cross Border Taxation
- Box VI – Maintenance Received
- Box VII – Investment Income
- Box VIII – Maintenance Paid and Losses from Previous Years
- Box IX – Mortgage Payments
- Box X – Other Tax Deductions
- Box XII – Paying your Taxes in Advance
- Capital Gains
- Box XIV – Bank Accounts and Insurance Policies
- Box XIV – Trusts
- Stock Exchange Tax
- Tax on Securities Accounts
- Nowhere to hide
- The Tax Bill
- Appealing the Tax Bill