Deductible expenses / Distance learning / Scholarship
August 28, 2012 | 25,00 EUR | answered by Dr. Yanqiong Bolik
I started a distance learning course in 2009. Since it is a course after vocational training, I would like to deduct the tuition fees as advertising costs.
However, I also received a (tax-free) scholarship from a government agency, which covers part of the tuition fees. I received payments annually for this purpose.
Recently, I had to repay the scholarship (including interest) because the conditions for it were subsequently removed.
Now I am faced with the task of finally preparing the income tax returns for 2009/2010/2011.
How do I deal with the scholarship received and later repaid? Do I have to offset the annual tuition fees with the scholarship, since I did in fact receive the money from the scholarship in the respective year? How do I handle the repayment of the scholarship (including interest)?
The easiest solution would certainly be to pretend that "nothing happened at all", as if the scholarship had never been there - even though I would then not be able to deduct the interest.
Dear questioner,
Thank you for your inquiry, which I am happy to answer taking into account your commitment and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
Based on your description of the situation, I assume that the scholarship was paid from public funds granted due to need for assistance or as aid to directly support education. It is similar to, for example, BAföG scholarships.
The deductibility of tuition fees is governed by § 11 (2) EStG: expenses are to be deducted for the calendar year in which they were paid. The portion of tuition fees covered by the scholarship is therefore not to be included in the years during your studies. These tuition fee expenses will only occur after completing your studies through repayment of the scholarship, and can be claimed in the year of repayment, including the interest.
While this approach may not be as convenient as "nothing at all happened," it may be advantageous for you due to progression, especially if you earn significantly more in repayment years than during your studies.
I hope I was able to assist you.
If there are still any uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
