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Loss carryforward for study in the country if you have lived abroad

November 8, 2020 | 30,00 EUR | answered by Steuerberater Knut Christiansen

I started a further education measure (Master of Business Administration) in Germany in 2018, but was still working in Austria at that time. In 2019, I moved to Germany and wanted to claim a loss carryforward for the year 2018 for the already applied study and deduct it with my tax return for 2019. Now the tax office told me that I cannot claim a loss carryforward for 2018, as I worked and lived in Austria. I was employed by the United Nations in Austria (so exempt from income tax). This might play a role. I have heard from various sources that it is possible to claim a loss carryforward even for the year 2018. Am I correct in my assumption or is the tax office's response correct that I am not allowed to claim a loss carryforward?

Steuerberater Knut Christiansen

Good morning and thank you for using frag-einen.com!

I would like to answer your question as part of an initial consultation.

In general, you could only claim the loss carryforward if you had a tax liability in Germany in 2018. This would only be possible if you had your residence or habitual abode in Germany that year. Otherwise, the losses can only be claimed or determined in the year in which you lived in 2018 (Austria). A "loss carryforward" to Germany is not possible. In this respect, I would judge from afar that the tax office is correct.

I hope this answers your question, if not, please feel free to contact me again.

Best regards

Knut Christiansen
Tax advisor