FAQ - Reimbursement of expense allowance

An expense allowance is a special form of appreciation. It is not a remuneration, but a reimbursement for expenses incurred in connection with the voluntary activity.

The individual’s expense allowance for the support provided should therefore be well below the minimum wage applicable to the activity in question. The long-term care

insurance funds usually accept an expense allowance of up to €10 per hour.

It is considered a reimbursement service, the costs of which are reimbursed by the long-term care insurance company. 

There are two possibilities for the reimbursement of the expense allowance:

1. Settlement of the expense allowance with the person being assisted

The individual volunteer settles the expense allowance directly with the person being supported. The person can then submit the invoice to their long-term care insurance company and will be reimbursed by the insurance company. 

2. Settlement on the basis of a notice of assignment

The reimbursement of expense allowance form can also be used for settlement on the basis of a notice of assignment. This allows the individual volunteer to settle directly with the long-term care insurance company of the person they are supporting. For this purpose, the box “Notice of assignment” must be filled out in the form for reimbursement of the expense allowance. It is important that the person being supported signs the notice of assignment separately. A reimbursement form for the expense allowancewill be sent to you with the registration confirmation after successful registration.

A form for reimbursement of the expense allowance will be sent to you with the registration confirmation after successful registration. Please fill out the form per month and per person supported. This form can be submitted to the long-term care insurance company of the person in need of care on the first of the following month at the earliest.

From the date of registration, the service of the individual volunteer can be settled with the long-term care insurance company. The registration date can be found in the registrationconfirmation.

If a caregiver receives an expense allowance from a person in need of care, this is basically taxable income.

However, for

• relatives
• as well as for non-relatives who, by providing care or assistance in everyday life, fulfil a moral duty within the meaning of § 33 paragraph 2 of the Einkommensteuergesetz (German Income Tax Act, EStG) towards the person in need of care,

a tax exemption pursuant to § 3 number 36 EStG is possible.

The income for services for body-related care measures, care-relatedsupport measures or help with household management is then tax-exempt up to the amount of the care allowance according to § 37 of the eleventh book of the German Social Code (SGB XI), but at least up to the amount of the relief amount according to § 45b paragraph 1 sentence 1 SGB XI.

This also applies if the person in need of care receives comparablebenefits from private insurance contracts in accordance with the provisionsof SGB XI or the allowance regulations for home care.

The tax offices regularly assume the existence of a moral duty if the caregiver only works for a person in need of care.