You can only claim special expenses in the year of payment. So if you are a student without taxable income, you will not benefit from a deduction for special expenses. However, if you claim the training costs as income-related expenses, you can carry this financial loss forward to your first year of employment in which you earn income. You must then claim your expenses as anticipated income-related expenses.
Mr A and Ms B are students. Mr A has already completed a degree, Ms B has not. Both have no taxable income in the relevant year, but 4.500 Euro in training costs. In the following year, both have similarly paid jobs.
As Ms B is undertaking a first degree, she can only claim the costs as special expenses in the year they are incurred. Without taxable income in that year, she has no tax advantage.
Mr A has completed a second degree. He can declare the training costs in a tax return for the relevant year as income-related expenses and thus incurs a loss. He can also claim this loss in the year after his studies when he has taxable income.
In the first year after his studies, Mr A therefore pays less tax than Ms B, assuming the same salary.
