Payments for care services can be tax-exempt if funded by a Personal Budget and recognized by the cost bearer, or if provided by institutions receiving at least 25% of their costs from statutory bodies. A plaintiff offering outpatient assistance to individuals with psychiatric conditions, whose services were paid via Personal Budgets, was initially denied tax exemption for her income. However, the Federal Fiscal Court (BFH) overturned this decision, sending the case back for re-evaluation. The BFH indicated that even indirect payment by the cost bearer could qualify for tax exemption.
Source: datenbank.nwb.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
