Driving is expensive. Fortunately, many costs can be deducted. Well over 1.000 euros in tax relief can bring that. We show you how it’s done.
Alex is a newly qualified mechanical engineering technician – and the proud owner of his first car. Finally no more driving with mom’s embarrassing tin box, alex rejoices. His own car is only a used one, but he chose and paid for it himself.
This is what alex has to pay for his car
alex paid 800 euro for his used car. For the young man a good price-performance ratio, because the old golf is in top shape. He has to be, because his first job starts in just under four weeks. But now alex has to pay several bills for his car.
Due are car tax, liability insurance and car insurance (partially or fully comprehensive). alex also takes out additional insurance for passengers, because he always wants to give colleagues a lift to keep his fuel costs down. Several hundred euros a year can be saved. it would be even more if alex took out fully comprehensive insurance, but that is no longer worthwhile for a car that is more than ten years old. Alex now wonders whether he can deduct car expenses from his taxes. Our video gives an answer in seconds.
For more details just read on.
alex can deduct these costs
Like any other car owner, alex can deduct two specific costs from his taxes: car liability insurance and passenger accident insurance. These are all the costs he uses to cover personal injuries. There is, however, one restriction: the costs for liability and passenger accident insurance, like the contributions to health and nursing care insurance, are counted as so-called other pension expenses. And they are only deductible up to a maximum of 1.900 euro deductible for singles. double the value for married couples. Since the deduction limit is 1.900 euros is very low, the maximum amount is often already reached with the basic health and statutory nursing care insurance.
He can’t enter the car tax or partially comprehensive insurance in his tax return. Nor the cost of an inspection.
TAX ABC
the biggest and most important tax saving item: as soon as alex starts his job, he can apply the commuter allowance for himself. this means: for every kilometer of a trip per day, alex gets a 30 cent tax break from the state. you can find all the details in our article commuter tax for beginners.
alex can deduct these accident costs
Catching the dark yellow light quickly, braking suddenly or checking your smartphone briefly: accidents can happen, especially in rush hour traffic. If alex finds himself in this situation, he can deduct all accident costs from his taxes. condition: he actually paid the costs himself and the accident happened to him on the way to or from work. Detailed information is provided in our top topic when and how you can deduct accident costs from your taxes.
By the way:
many commuters use two different means of transport, for example when they ride their bike to the train station and then take the train to work. How the commuter allowance is calculated and which maximum amounts apply, you can read in our overview travel costs – you need to know.