Dismissing studies and training as income-related expenses: How to start your professional life with a large tax benefit
Those who study or are in other vocational training may now be able to save heavily on taxes. What only a few people know and use: Last year, the Federal Finance Court decided that students are entitled to the full deduction of their professional expenses for their first degree or initial training.
So far, it was only possible to deduct the costs of studying as special expenses. This has disadvantages compared to the cost of income: The special expenses for studying are usually limited to 6,000 € and may not be offset against profits in other years. Therefore, the special deduction for students often has no effect. Different in recognition of study expenses as income-related expenses:
Losses from advertising costs may be carried forward into the future for several years. So, if you work and get a salary after graduating, the old losses from your studies will noticeably lower the tax. Here can come out a few thousand euros in tax savings. A pleasant warm rain that can sweeten the start of your career!
Unfortunately, there is still a downer
The Federal Finance Court has indeed opted for the deduction of advertising costs. But the very last word is now the Federal Constitutional Court. Therefore, it may happen that the tax office does not recognize the advertising cost deduction for studying. But even in this case, the advantage is not lost yet:
If your tax office rejects the deduction, file an objection with reference to the pending decision of the Federal Constitutional Court. If the Constitutional Court then also appeals for the withdrawal, you have secured your tax savings through your objection!
How to secure the benefit now
- Now collect the documents proving the costs of your studies. Do not just think about books, etc. These include, for example, large items such as rent for a student room as a second home at the study location if you do not live at home.
- Make an annual tax return. This usually results in a significant loss. For the maintenance paid by the parents does not have to be offset against the tax as income. Even a € 450 mini-job, as many students have, does not affect the tax return as a taxable income, because all taxes and duties are already paid flat-rate with mini jobs.
- These losses are then offset against the salary income you earn after completing your studies at work. Prerequisite: The occupation taken must be connected with the studies. For example, anyone who has studied philosophy and works as a waiter after graduation can not claim the costs of studying.