Can I claim my commuting expenses for tax purposes?
March 12, 2023 | 40,00 EUR | answered by Tina Ullmann
Dear tax advisor,
my name is Anneliese Vollmann and I have been working in a company located about 20 kilometers from my residence for several years. I drive to work and back home daily with my own car. Now I am wondering if I can claim the commuting expenses for tax purposes.
I have never thought about deducting the commuting expenses from my taxes before. With the significant increase in fuel prices in recent years, it would be a great relief for me if these costs were tax-deductible.
My concern is that I may be missing out on money by not claiming the commuting expenses for tax purposes. Since I have to spend a considerable amount on gasoline each month, it would be a financial relief for me if I could deduct these costs from my taxes.
Could you please tell me if and how I can claim my commuting expenses for tax purposes? Are there specific requirements that I need to meet in order to deduct the costs? What documents do I need to provide for this? And how much could be the potential savings for me if I were to claim the commuting expenses for tax purposes?
Thank you in advance for your help and support.
Best regards,
Anneliese Vollmann
Dear Mrs. Vollmann,
Thank you for your inquiry regarding the possibility of claiming your commuting expenses to work as tax deductible. I am glad that you are looking into this matter, as indeed, under certain conditions, you can deduct the costs of your commute from your taxes.
In principle, it is possible to declare commuting expenses as business expenses in your tax return. The actual incurred costs are taken into account, such as the costs for gasoline, insurance, maintenance and repairs of the vehicle. Depreciation of the vehicle as well as parking fees may also be claimed under certain circumstances.
However, in order to deduct commuting expenses from your taxes, certain conditions must be met. Firstly, your commute to work must be done regularly and permanently, not just occasionally. Additionally, the commute between your home and your workplace must be the shortest and most cost-effective route. The costs of alternative means of transportation such as public transport or bicycle can also be claimed if they are cheaper than using your own car.
To declare commuting expenses in your tax return, you usually need evidence such as gas receipts, invoices for repairs or depreciation of the vehicle, and a mileage log in which you record the driven kilometers. Furthermore, make sure to only declare the actual incurred costs and not use lump sum amounts.
The potential savings from the tax deduction of commuting expenses depend on your individual tax rate. Depending on your tax bracket and your taxable income, the savings can vary. Therefore, it is worth declaring your commuting expenses in your tax return and potentially getting money back.
I hope this information was helpful to you. If you have any further questions or need assistance with preparing your tax return, I am happy to help.
Best regards,
Tina Ullmann, Tax Advisor
