SteuerGo FAQs

When are training costs deductible as special expenses and when as income-related expenses?

A distinction is made between training and further training costs as follows:

(1) Training costs are only the expenses for the first vocational training and for a first degree as initial training. You can deduct these costs as special expenses, but only up to a maximum amount of 6,000 Euro.

(2) Further training costs are costs for all educational measures undertaken after the first vocational training or after the completion of the first degree. This also includes retraining for a different profession, educational measures in the current profession, further training in a non-practised profession, or a second degree. You can fully deduct such costs as income-related expenses. However, it is important that the expenses are related to the profession and that you intend to use the further training to generate income.

(3) First or second degree? You can only deduct the costs for the first degree as special expenses to a limited extent. For a second degree, however, the costs are always fully deductible as income-related expenses - provided that income is also to be generated. The second degree must not be pursued as a hobby, as some pensioners do, for example.

You can only claim special expenses in the year of payment. So if you are a student with no 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.