Can I claim my costs for professional development as a tax deduction?
March 21, 2023 | 40,00 EUR | answered by Christine Witzelmann
Dear tax advisor,
my name is Sandra Rothammer and I work as an employee in a medium-sized company. In my role as project manager, it is important that I stay up to date and continuously expand my expertise. For this reason, in recent years I have attended various professional development courses to improve my skills and knowledge.
Now I am wondering if I can deduct the costs of these further education courses from my taxes. The seminars and courses were all job-related and have helped me enhance my professional qualifications. Since I attended the courses in my free time and paid for them out of my own pocket, it would be a great relief for me if I could at least deduct a portion of the expenses from my taxes.
My concern is that I may not be able to deduct the costs of further education from my taxes and therefore be stuck with the expenses. Since it is not a small amount and I am unsure if my employer would cover the costs, it is crucial for me to know if and to what extent I can claim these expenses on my taxes.
Could you please inform me if the costs of professional development courses are tax deductible and what steps I need to take? Are there specific requirements or evidence that I need to provide in order to include the expenses in my tax return? I would greatly appreciate your help and information on this matter.
Thank you in advance.
Sincerely,
Sandra Rothammer
Dear Mrs. Rothammer,
Thank you for your question regarding the tax deductibility of professional development expenses. It is understandable that you are wondering whether you can claim the costs of the seminars and courses you attended on your taxes. I am happy to explain to you the relevant tax regulations and requirements regarding the deductibility of education expenses.
In general, the costs of professional development can be claimed as business expenses in your tax return. The requirement is that the education is related to your current or future professional activities and serves to improve or expand your professional knowledge. Since you mentioned that the seminars and courses were job-related and helped you enhance your professional qualifications, it is generally assumed that the costs are tax deductible.
To include education expenses in your tax return, you should collect and keep relevant documents such as invoices, certificates of attendance, and payment receipts. These serve as evidence of the business-related use of the expenses. It is important that the documents contain all relevant information, such as the seminar's name, the event's duration, the cost amount, and the connection to your professional activity.
When reporting education expenses in your tax return, you should list them under the "business expenses" section. There, you can also include other work-related expenses such as professional literature, magazines, or training costs. Keep in mind that there is usually a maximum limit for the deductibility of education expenses, which can vary depending on your individual situation.
It is possible that your employer covers the costs of professional development. In this case, you would not have to bear the costs yourself and would not be able to include them in your tax return. It would be advisable to clarify with your employer whether and to what extent they can cover the costs of professional development.
I hope this information is helpful to you and answers your question regarding the tax deductibility of education expenses. If you have any further questions or need assistance with filing your tax return, please feel free to contact me.
Best regards,
Christine Witzelmann
Tax Advisor
