How does the commuter allowance work and how can I use it in my income tax return?
September 5, 2023 | 40,00 EUR | answered by Andreas Stricker
Dear tax advisor,
my name is Hilde Schmitt and I have been working as an employee in a company in the city for five years, which is approximately 50 kilometers away from my place of residence. Due to the distance, I commute to work daily by car. This year, I heard that there is a possibility to claim the commuter allowance in my income tax return in order to deduct my travel expenses from taxes.
I have never heard of the commuter allowance before and therefore do not know how it works and how I can use it in my tax return. Can I only use the commuter allowance for certain modes of transportation such as the car or public transport? Is there a minimum number of kilometers that I have to travel per day in order to be able to claim the commuter allowance? What documents do I need to correctly specify the commuter allowance in my tax return?
I am concerned that I might be missing out on money by not including the commuter allowance in my tax return. Therefore, I would be very grateful if you could explain to me how to properly use the commuter allowance and what benefit it brings me.
Thank you in advance for your help and support.
Sincerely,
Hilde Schmitt
Dear Mrs. Schmitt,
Thank you for your inquiry regarding the commuter allowance in your income tax return. I am happy to explain to you in detail how you can benefit from this tax advantage.
The commuter allowance is a tax deduction that allows employees to claim their commuting expenses between their place of residence and workplace for tax purposes. It does not matter which mode of transportation you use to commute to work, whether by car, public transportation, bicycle, or on foot. The amount of the tax deduction currently stands at 0.30 euros per kilometer between your place of residence and workplace, with only the one-way distance taken into account.
To include the commuter allowance in your tax return, you simply need to provide the number of workdays in the year and the distance between your place of residence and workplace. There is no minimum number of kilometers you must travel per day to be able to claim the commuter allowance. Even short commuting distances can be considered for tax purposes.
You usually do not need receipts or proof for the calculation of the commuter allowance. It is sufficient if you can provide credible information about the distance and number of workdays. However, it is advisable to document and keep the relevant data in case the tax office requests proof.
The commuter allowance can provide you with a significant tax advantage and help reduce your commuting expenses. By including the commuter allowance in your tax return, it reduces your taxable income and can lead to a tax refund.
I hope that my explanations are helpful to you and that you can now correctly use the commuter allowance in your tax return. If you have any further questions, please do not hesitate to contact me.
Best regards,
Andreas Stricker, Tax Advisor
