Can I deduct my commuting expenses from my taxes?
November 21, 2023 | 40,00 EUR | answered by Christine Witzelmann
Dear tax advisor,
I hope you can help me with my question. My name is Ingo Siebert and I have been working for several years in a company that is approximately 30 kilometers away from my place of residence. Every day, I drive to work and back home in my own car. Now I am wondering if it is possible to deduct the costs of my commute from my taxes.
Currently, I bear all the expenses for gasoline, insurance, maintenance, and repairs of my vehicle on my own. These expenses make up a considerable part of my monthly budget. Therefore, it would be very helpful for me if I could at least partially deduct these costs from my taxes.
I have already heard about the possibility that commuter allowance or distance allowance allows the costs of commutes between home and workplace to be tax deductible. However, I am not sure if I meet the requirements for this and how exactly I have to declare these costs in my tax return.
Could you please explain to me if and to what extent I can deduct my work commutes from taxes? Are there specific criteria I need to meet in order to claim these costs? And how exactly do I need to report these expenses in my tax return to avoid any issues with the tax authorities?
I would greatly appreciate a detailed response and any possible solutions you may have.
Thank you in advance.
Sincerely,
Ingo Siebert
Dear Mr. Siebert,
Thank you for your inquiry regarding the tax deductibility of your journeys to work. It is understandable that you are considering the possibility of claiming at least a portion of the costs for your daily commutes as a tax deduction. I am happy to explain to you the requirements and options regarding the commuter allowance.
The commuter allowance or distance allowance allows employees to deduct the costs of journeys between their home and workplace for tax purposes. You can claim a specific amount for each kilometer you commute to work. In 2021, this amount is 0.30 euros per kilometer.
To be eligible for the commuter allowance, you must meet certain requirements. Firstly, your workplace must be at least 20 kilometers away from your home. In your case, this is true as your workplace is approximately 30 kilometers from your residence. Additionally, you must actually cover the distance with your own motor vehicle and not use public transportation.
Furthermore, it is important to note that the commuter allowance only applies to journeys between your home and primary workplace. A primary workplace is where you regularly work. If you work at different locations or regularly work from home, the tax deductibility of your journeys may become problematic. However, in your case, if you commute to your fixed workplace every day, you should not have difficulty utilizing the commuter allowance.
To claim the commuter allowance in your tax return, you simply need to provide the number of kilometers between your home and workplace. You can include this information in your income tax return or in a separate attachment form. It is advisable to keep all receipts for your journeys and costs in case the tax office requests proof.
In summary, you can deduct the costs of your journeys to work within the commuter allowance, as you meet the requirements. However, please note that the commuter allowance is capped at 4,500 euros per calendar year. If your annual costs exceed this limit, you cannot claim any further amounts.
I hope this information is helpful and answers your question comprehensively. If you have any further questions or need assistance with your tax return, please do not hesitate to contact me.
Kind regards,
Christine Witzelmann
