Craftsman Tax Bonus

Few tax breaks are as simple and as often left on the table as the craftsman bonus under Section 35a. The rule is simple: from the labour costs (not the materials) of a craftsman or household bill you deduct 20 percent directly from your tax bill. Not from the tax base but from the tax itself - that is real money, not an allowance.

The bonus has two separate pots, and that is where the most common mistake lies. Craftsman services under Section 35a(3) - renovation, repair, maintenance, modernisation on your household - give 20 percent of up to 6,000 euros in labour costs, so up to 1,200 euros reduction. Household-related services under Section 35a(2) - cleaning, garden care, winter service, care - give 20 percent of up to 20,000 euros, so up to 4,000 euros. You can use both pots fully in the same year: together up to 5,200 euros.

The calculator keeps both pots apart. You can either quickly type in the sums for craftsmen and household or use the invoice tracker to record individual bills, each assigned to the right category. Progress bars show how much of each cap you have already used - so you can see whether pulling a bill forward or pushing it into next year pays off.

Two things are mandatory or the bonus collapses: first, only labour, travel and machine costs count - material is out. Make sure the invoice states the labour share separately. Second, you must pay by bank transfer. The tax office does not accept cash, no matter how good the receipt looks. The calculator reminds you of both rules.

A frequently forgotten case is the chimney sweep: their bill is fully deductible as a craftsman service, including measurement and inspection work. The labour share in your service-charge statement as a tenant also counts - caretaker, stairwell cleaning, garden care. Many tenants do not even know they may use the bonus at all.

Important: the bonus only applies to services in an existing household. New-build measures are excluded, because they are what create a household in the first place. The legal basis is Section 35a(2) and (3) plus the Federal Ministry of Finance circular of 9 November 2016. The calculator runs in the browser, your invoice data stays on your device, and it does not replace tax advice - but it makes sure you leave no euro behind.