Study expenses
February 21, 2012 | 20,00 EUR | answered by StB Manuela Ponikwar
Dear Sir or Madam,
I am currently a student and working both independently and in a permanent position to finance my studies.
Due to my two activities, I had income of €16,848.23 in 2011 (probably less as a few invoices were not taken into account).
I studied the first half of the year in the Netherlands and the following half in the USA. Therefore, I had very high expenses for my studies.
- Second residence in the Netherlands
- Rent in the student dormitory in the USA
- Travel expenses to the Netherlands
- Flight to the USA
- Phone bill in the USA, as I need to be reachable for my work
- Books and materials
- Health insurance in Germany
- Health insurance in the USA
- Visa costs in the USA
What can I deduct and to what extent? Phone expenses and rental costs are sometimes considered as personal expenses, right?
I would like to obtain a rough estimate from you on how much it would cost to properly consider my study expenses in the income tax return by a knowledgeable tax advisor. There are about 20-30 receipts.
I look forward to your response.
Best regards
Dear inquirer,
Thank you for your inquiry, which I would like to answer in the context of an initial consultation, considering the appropriate fee as follows:
The approach to costs for a studies depends significantly on whether it is a first degree or if you have previously studied or completed a training.
Costs that may arise for a first degree can only be considered for tax purposes within the framework of a special deduction. Here, for 2011 you can claim a maximum of 4,000 EUR, from 2012 a maximum of 6,000 EUR as your own training costs and thus reduce your taxable income. The costs would include pretty much everything you mentioned above (external accommodation, travel expenses, materials, etc.) After the Federal Fiscal Court (BFH) had decided differently on the topic of first degrees last summer, the legislator has reacted with a clarification of the law. Now a pilot has filed a lawsuit, so that one can join the lawsuit process within the objection procedure.
For most people, claiming the costs as anticipated job-related expenses would be more advantageous, as a loss carryforward can be built up (if there are no revenues during the studies) and the costs can be claimed without limitation. This is generally only possible with the legal regulation if your studies are a second degree or after completing a training.
In your case, there is income. A loss carryforward could only occur if the costs for the second degree in 2011 were higher than your income. This advantage is probably not relevant for you.
If we calculate 16,000 EUR income for you - 4,000 EUR training costs (special deductions) - 1,500 other special expenses (estimate for health insurance, other insurances), we would have a taxable income of 10,500 EUR and thus an income tax burden in the basic rate of 406 EUR + solidarity surcharge + church tax.
The job-related expense deduction is more advantageous if your costs exceed 4,000 EUR in 2011, as the tax burden is 0 for a taxable income of up to 8,004 EUR.
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To further assess your case, please answer the following questions:
Was your study a first degree or if you have already completed a training or study before.
Did you have your own residence in Germany throughout the study period, where you were organizationally and financially involved and which included a self-contained apartment with its own kitchen?
What type of self-employed and employed activities do you carry out? Where did you provide your services during your time in the Netherlands or USA? The relevant double taxation agreements should also be considered, as the tax jurisdiction often follows the residency principle and you may have had residences in multiple countries.
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Ideally, send me your response via email to steuerberatung@ponikwar.de. The feedback will of course be provided within the framework of the inquiry fee.
Then, after a final assessment, I can also send you an estimate of the fee directly.
Until then, best regards
Manuela Ponikwar
Tax consultant
http://www.ponikwar.de
