How can I deduct my commuting expenses for work from my taxes?
May 22, 2024 | 40,00 EUR | answered by Quentin Reuter
Dear Tax Consultancy,
My name is Katja Binder and I work as an employee in a company that is located about 20 kilometers from my place of residence. I drive to work by car daily and would like to know if and how I can deduct my travel expenses for tax purposes.
So far, I have not included my travel expenses in my tax return because I am unsure if I am even eligible for a tax deduction. My colleagues have advised me to seek professional tax advice to clarify this matter.
I am wondering if I can deduct the full amount of my travel expenses or only a portion. Additionally, I am unsure about the documents I need and how to best prepare them. I want to make sure that I do not make any mistakes and miss out on any claims.
Could you please explain to me how I can deduct my travel expenses for work from my taxes and what specific steps I need to take for this? Are there possibly other ways to reduce my tax burden?
Thank you in advance for your support and advice.
Best regards,
Katja Binder
Dear Mrs. Binder,
Thank you for your inquiry regarding the tax deductibility of your commuting expenses to work. I am pleased that you have reached out to me as a professional tax advisor to seek clarity on this matter.
In general, it is possible to deduct commuting expenses to work for tax purposes. However, there are certain conditions to be aware of. Firstly, it is important to know that as an employee, you have the option to list business expenses in your tax return to reduce your tax burden. Commuting expenses to work are also considered business expenses.
The amount of commuting expenses that you can deduct for tax purposes depends on whether you travel to work by car, public transportation, or bicycle. If you commute to work by car, you can either deduct the actual costs incurred per kilometer driven or a flat rate of 0.30 euros per kilometer as business expenses. In your case, where your workplace is about 20 kilometers away from your place of residence, you could deduct either the actual costs for the 40 kilometers per day or the flat rate of 0.30 euros per kilometer.
To list your commuting expenses in your tax return, you will usually need proof of the kilometers driven. Suitable documents for this purpose include fuel receipts, workshop invoices, or a mileage log. It is important that you collect and keep all relevant receipts to be able to prove, in case of an audit by the tax office, that the reported commuting expenses were actually incurred.
In addition to deducting commuting expenses, there are other ways to reduce your tax burden. These include the deductibility of job-related training and education costs, work equipment, work clothing, or relocation expenses related to a job change.
Therefore, I recommend gathering all relevant documents and preparing thoroughly for the preparation of your tax return. If you have further questions or need assistance, I am happy to help.
I hope that this information has been helpful to you and wish you success in deducting your commuting expenses to work.
Best regards,
Quentin Reuter
