Tuition fees in the tax return, smart tax

Tuition fees can either be as special editions up to max. 6,000 € or as advertising costs or operating expenses in the student’s tax return.

Tuition fees for a child

Tuition fees that may be paid for a child cannot usually be applied. A child is already considered taxable if it contains child benefit or the child allowance in the tax return. Parents receive a tax-free allowance for children over the age of 18 who are accommodated to study outside of their parents’ home. This should tax compensate for the increased need of the child.

Special expenses or advertising costs

In order to classify the tuition fees in the student’s tax return, it is important whether it is a first or second degree. In the case of a first degree, the costs can be recognized as special expenses. A second degree involves anticipated advertising costs or operating expenses.

First or second degree?

First degree: The first training after graduation or a bachelor’s degree are considered first degree. An exception is studying / training within the scope of an employment relationship (dual study).

Second degree: An apprenticeship must have already been completed or a degree must have been completed. You can find a complete list here.

It is worth submitting a tax return for students?

Filing a tax return can pay off for students studying for a second degree. In the case of a second degree, tuition and other expenses for attending the university can be recognized as anticipated advertising costs. The means, that these costs are first collected and found as a loss. This loss can later be offset directly against this income if the student receives income from his studies. Submitting a tax return during a second course of study can reduce the subsequent tax liability after entering the world of work.

Students who are completing their first degree can also pay a tax return if they earn income that is higher than the basic allowance in addition to their degree. Then these students would have to pay taxes and would reduce the tax burden through the special expenses of the tuition fees. In contrast to the students with a second degree, where the tuition fees represent advertising costs, the special expenses deduction can not be carried over into the following years and cause no loss. The deduction of tuition fees as special expenses only has an impact in the year in which the tax return is made.

The decision whether expenses for a first degree are also recognized as advertising costs is still pending at the Federal Constitutional Court (Az: 2 BvL 23/14 and 2 BvL 24/15). Therefore, these costs can also be recorded as training costs in the advertising costs. If the decision is different, nothing is lost for now. The cost will be, if that Court decides in favor of the student, recognized as an advertising expense.

Tuition fees for a child

Special expenses or advertising costs

First or second degree?

It is worth submitting a tax return for students?

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