Deductible costs for training in tax returns

Deduct training costs from tax

Training costs can be deducted from tax. This is currently possible with regard to both initial and second training. Expenditures for further and advanced training can be deducted as advertising costs.

What counts as training?

In general, apprenticeships are all state-recognized vocational training measures. Accordingly, costs for

At the moment it is irrelevant when it comes to deducting the training costs, whether it is initial training or second / further training. However, there are differences in the type of withdrawal.

With the tax allowance calculator, you can quickly and easily calculate your gross annual income taking various tax allowances into account.

What is deductible during initial training?

If you are training outside of an employment relationship, you will not earn any money from the training, e.g. at

a degree
paid training such as physiotherapy.

Since 2004, the costs of such initial vocational training have been expenses for private living and are regarded as special expenses. Therefore can maximum 6,000 euros are deducted annually. In training outside of an employment relationship, however, no or – e.g. through a part-time job – rather low income.

Since special expenses can only be deducted in the year in which they were made, but those affected often have an income below the basic allowance in these years, this regulation often does not bring them any advantage.

The Federal Constitutional Court is currently ruling on the current regulation.

Initial training in employment

Training within an employment relationship is e.g..

an apprenticeship
a dual degree
a legal clerkship

Here the people receive a taxable salary. For this reason, they have the right to all the costs necessary to earn the salary, unlimited tax deductible.

It should be noted that it must be vocational training that results from the employment relationship. For example, if you study voluntarily alongside your job, you can only deduct a maximum of 6,000 euros per year from the special expenses section of your tax return.

What is deductible in the second training?

In the case of a second course or any further course, the costs can be deducted as advertising costs without restriction. The same applies to training and further education. Discarding secondary training in the tax return can mean substantial tax refunds.

Summary: Differentiation between first and second training

training	second training
The first apprenticeship / vocational training or first degree ever	Further training, further studies after completing initial training
Duration: at least 12 months at full-time and completion through final examination	e.g. a degree after vocational training or a master’s degree after a bachelor’s degree
Costs can usually be deducted as special expenses	Unlimited costs can be deducted as advertising costs

What should be considered when deducting the training costs?

There is a general obligation to provide evidence of the costs that are to be deducted for vocational training. For the trainees themselves, the rule is that there is no lump sum.

Only expenses that can actually be proven can be deducted.

This means that you have to prove the items that you deduct via invoices, receipts and other supporting documents.

However, all expenses related to the training course can be proven. These include, for example:

All costs for the application
Journeys to the workplace or to the vocational school
Cost of study materials
Cost of work materials

How much money can parents pay for their children’s education?

Many young adults could not study or complete vocational training without the financial support of their parents. The state is aware of this fact and takes it into account by granting parents a tax-free allowance for the corresponding expenses. This is 924 euros per year.

It is also subject to various conditions. These are:

The child is of legal age
The child is in training
The child is entitled to child benefit
The child no longer lives at home

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