As of: April 6, 2024, 6:00 p.m
By: Dieter Tannert
Comments
Press
Split
Whether you can deduct the costs of education depends on various factors. What applies to tax returns?
In general, German tax law states that expenses incurred in connection with a professional activity from which one later earns money are tax deductible. However, the tax authorities have become increasingly concerned that very high costs may initially be incurred, which will then be claimed for tax purposes. One only has to think about pilot training for a commercial pilot's license, which can easily cost more than 60,000 euros, or the lengthy and expensive medical studies of a doctor.
Initial vocational training is only tax deductible to a limited extent
The state therefore quickly decided in the past to only allow costs for initial vocational training to be deducted from taxes if money was already earned during the training, as is the case, for example, with an apprenticeship contract or a dual course of study. Otherwise, costs for initial training can only be deducted from taxes as so-called special expenses of up to 6,000 euros per year.
Whether you can deduct the costs of education depends on various factors. (Symbolic image) © Rolf Vennenbernd/dpa
Further training costs must be related to the job
However, once you have completed your initial vocational training, you have good opportunities to claim unlimited future expenses for further training from your taxes. However, these expenses must be related to the job or a future career orientation with which you want to earn money. It is unwritten about all educational expenditure that it must contribute to using the education acquired for an activity that earns money. If you are in an employment relationship, educational costs can be deducted from income from non-self-employed work as so-called business expenses. Especially when it comes to educational expenses that could also affect the private sector, such as language courses, you should be able to explain to what extent it affects your job. A certificate from the employer is helpful.
Expenses related to further or future professional practice
Educational expenses are not only possible in the existing profession. Anyone who decides to reorient themselves again after their first successful vocational training can now claim such costs for tax purposes without limitation. This can apply to another training occupation, in which case the expenses can be deducted from income from non-self-employed work as business expenses. For example, if you want to become self-employed as a full-time or part-time activity, the costs incurred for previously completed educational courses can also be recognized for tax purposes. These must then be taken into account in the tax as so-called anticipated costs. Since the activity is then to be carried out as self-employed activity, these expenses are deductible from income from self-employment or commercial activity. If no income is generated there or if it is lower than the expenses, the resulting losses can then be deducted from other existing income and thus reduce the tax.
My news
Long imprisonment threatens: proceedings against Scheuer regarding the toll disaster probably shortly before the decision is read
Many pensioners are entitled to more pension points - but these are only available upon application
German grocery chain is insolvent: read “Moral apostles who want to save the world”.
Tax return 2023: From this amount onwards, pensioners have to pay taxes
Satellite images reveal: Russia's army is preparing Black Sea ports against drone surveillance
“No miracle weapon” against Putin: NATO doubts F-16 fighter jets as a panacea in the Ukraine war read
Costs for the master's degree or second degree
Successfully completing your studies for the first time generally counts as your first vocational training. This means that expenses for a subsequent master's degree or further studies can be deducted without limit. Depending on the later orientation, the costs incurred can then be recognized as anticipated business expenses in the income from non-self-employed work if one later wants to enter into an employment relationship, or as anticipated business expenses in the case of a desired self-employment activity, such as as a tax advisor or consulting engineer. The costs incurred can be offset against other existing positive income, for example from employment during the semester break, and reduce the tax burden. If you have no other positive income, you should always declare losses in your tax return, as these will then be determined by the tax office in the tax assessment and can be deducted in a subsequent period in which you have earned money, regardless of the activity.
Would you like valuable money-saving tips?
Merkur.de's “Clever Save” newsletter always has the best money-saving tips for you every Thursday.
The tax office critically examines whether educational measures are intended to generate income
Since education costs can only be taken into account in taxes if they are suitable for later earning income as a self-employed person or employee, the tax office takes a strict look at expenses that only promise income in later periods. The tax office often uses the opportunity to initially issue tax assessments only provisionally. The expenses are initially taken into account, but the tax office reserves the right to assess at a later period whether the expenses incurred are really related to income that can be achieved later. The tax assessment can therefore be changed retroactively by the tax office to the detriment of the taxpayer. However, this does not mean that educational expenses are necessarily only recognized if money is actually collected later. If you can demonstrate that your life plans have changed or that you later discovered that the desired activity will not generate sufficient profit, the tax office must continue to recognize the losses. But you should always be able to provide good reasons for doing so.