Deductible Expenses - Retroactively for further education studies
June 30, 2011 | 30,00 EUR | answered by Michael Herrmann
Hello,
The situation is as follows:
Since 2008, I have been taking a part-time further education course which costs approximately 10,000 EUR in total.
Originally, I had an agreement with my employer that they would cover the costs in full, on the condition that I do not resign within 1 year after completing the course, otherwise I would have to repay the costs.
My employer covered the costs for the years 2008 and 2009 (total: 4,500 EUR), so I did not include any information about it in my tax returns for 2008 and 2009.
However, I did resign in April 2011, and my former employer naturally requested the 4,500 EUR back, which were deducted from my salary.
Question:
Can I, and if so, how and for which years, can I claim the 4,500 EUR as a tax deduction?
Thank you.
Dear inquirer,
first of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the facts presented. Missing or incorrect information regarding the actual circumstances can affect the legal outcome.
The costs of further education, as you were professionally obligated, are undisputed business expenses. In previous years, however, you were not economically burdened as your employer covered the expenses.
Due to the repayment agreement and the repayment made this year, your burden has now occurred. Therefore, the repayment amount this year should be considered as business expenses. It is important to provide the tax office with the best possible evidence of the transaction. You should provide evidence of the agreements, the repayment process, and the further education costs.
The deduction of business expenses is not possible if the employer treated the further education costs in previous years as tax-free income. In this case, it would only be a repayment of tax-free income, which does not have any tax implications.
I hope that these explanations have given you a sufficient overview of the situation in the context of your initial consultation, and I remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
