These two categories both allow expenses to be deducted, but they target different situations.
Special expenses
They cover expenses set out by law: insurance premiums, old-age provision contributions, interest paid, donations to recognised organisations, annuities paid… Each is subject to its own conditions and ceiling.
Extraordinary charges
These are unavoidable expenses that exceed the normal burden of a taxpayer in a comparable situation: unreimbursed medical costs, costs linked to a dependency situation, childcare, etc. They are taken into account above a threshold that depends on income and household composition.
Special expenses are items listed by law (insurance, retirement savings, interest…). Extraordinary charges cover exceptional and unavoidable expenses, above a threshold.
Why tell them apart?
Each category has its own calculation rules and supporting documents. Classifying them correctly means optimising your tax return safely. We help you identify what falls under each during your review.
General information, subject to legal and contractual conditions and your personal situation; to be confirmed with the ACD (Luxembourg tax authority) or a qualified professional.