Personal taxation · Luxembourg
Extraordinary expenses in Luxembourg: the normal burden
A high expense is not automatically a deductible extraordinary expense. You need to check that it is extraordinary and unavoidable, then the amount the taxpayer still bears and, depending on the scheme, the share exceeding the normal burden calculated on the basis of income and household.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
Qualify before you calculate
The expense must meet the conditions of the scheme. An ordinary household expense, or one already deducted in another category, must not be added a second time as an extraordinary expense.
Costs related to illness, disability or supporting relatives can involve very different situations. Keep the evidence showing why the expense was necessary and which share falls on you.
Calculating the amount left for you to bear
Reimbursements from insurers, health funds or other bodies reduce the expenses to be considered. The normal burden is not a flat amount that is the same for everyone: the official table takes account of income and family situation.
Certain flat-rate allowances are subject to their own conditions. They must be distinguished from the non-flat-rate method, and the permitted combinations must be checked.
Fictitious example of the method
A household pays a medical expense and then receives a reimbursement. The starting point is the net cost left to bear, not the gross invoice. If the normal burden method applies, only the portion that meets the conditions and exceeds that burden is included in the calculation.
Childcare or household staff costs must not be reused in the non-flat-rate method when they are already covered by the flat-rate allowance chosen.
Documents
- Invoices, proof of payment and reimbursements.
- Evidence of necessity or obligation, depending on the case.
- Household situation and income relevant to the calculation.
- Expenses declared under other headings, to avoid double counting.
The firm’s other tax engagements
Depending on your situation, the firm also handles tax, VAT and payroll, the regularisation of late tax filings and assistance during a tax audit. Fees are listed in the firm’s fee grid.
Official sources and scope
The rules apply to the year and profile concerned. Examples flagged as fictitious explain a method; they are not an individual validation. The documents and options of your file are covered by a separate engagement.