Which tax deductions are relevant for cross-border commuters and how do I apply for them?
January 11, 2022 | 50,00 EUR | answered by Helma Fischer
Dear tax advisor,
I am Fred Fischer and I work in Switzerland while living in Germany. As a cross-border commuter, I have heard that there are certain tax deductions that could be relevant to me. Unfortunately, I am unsure of exactly what these deductions are and how I can apply for them.
Currently, I pay my taxes in Switzerland, but I am unsure if I may also be liable for taxes in Germany. I want to ensure that I take advantage of all possible deductions to minimize my tax burden.
I am aware that cross-border commuters often benefit from deductions such as commuter allowance, business expenses, or health insurance contributions. However, I lack the necessary knowledge on how to claim these deductions in my tax return.
Therefore, my question is: What tax deductions are relevant for cross-border commuters like me and how can I apply for them? Are there specific forms or documents that I need for this? What specific steps do I need to take to receive the deductions?
I would greatly appreciate your assistance in this matter and providing me with clear instructions on how to optimize my taxes as a cross-border commuter.
Thank you in advance for your support.
Sincerely,
Fred Fischer
Dear Mr. Fischer,
Thank you for your inquiry regarding tax deductions for cross-border commuters. As a tax consultant with extensive experience in the field of international taxation, I can assist you and provide you with clear guidance on how to optimize your taxes as a cross-border commuter.
First and foremost, it is important to note that cross-border commuters are generally subject to taxation in the country where they work. This means that as a cross-border commuter working in Switzerland and residing in Germany, you must pay your income tax in Switzerland. While you are considered a resident in Germany, due to the double taxation agreement between Germany and Switzerland, your income is typically only taxed in Switzerland.
To ensure that you claim all relevant tax deductions, you should include the commuter lump sum, professional expenses, and health insurance contributions in your tax return in Switzerland. The commuter lump sum pertains to the travel costs between your residence in Germany and your place of work in Switzerland. Professional expenses encompass all work-related expenses, such as training costs, professional literature, or work equipment. Health insurance contributions can also be claimed as deductions.
In order to apply for these deductions, you typically need appropriate documentation and evidence, such as tickets for commuting, invoices for work equipment, or contribution certificates from your health insurance. It is important to keep these documents carefully and include them in your tax return.
Additionally, I recommend contacting a tax consultant in Switzerland who is knowledgeable about cross-border taxation and can assist you in optimizing your tax affairs. A professional tax consultant can help you claim all relevant deductions and ensure that your tax burden is minimized.
I hope this information is helpful and addresses your question. If you have any further inquiries or require assistance, please do not hesitate to contact me.
Best regards,
Helma Fischer
