Employees can deduct many things related to their professional activity from their taxes. Although the Tax Office automatically takes into account a fixed amount of 1,230 euros per year for each employee, this amount can often be exceeded by larger individual tax items, such as daily work at home, a trip of more than 20 kilometres, expensive training or moving for work reasons. In these cases, anyone who does not declare their expenses to the Tax Office waives the tax refund, which amounts to an average of 1,095 euros.
1. Distance assignment
Regardless of the means of transport, you get 30 cents for the first 20 kilometres and 38 cents for each additional kilometre. However, only the outbound journey, i.e. the one-way trip, is counted. The mileage allowance is multiplied by the number of working days. If the one-way journey is longer than 20 kilometres, the flat-rate income tax allowance has already been exceeded and a tax refund can be expected. Example: 210 working days x 20 km x 0.30 euros equals 1,260 euros.
2. Home office flat rate
Anyone who works from home can use the flat rate for teleworking, regardless of whether they have a studio. It amounts to six euros per working day. A maximum of 210 days are recognised. If the maximum number of working days is reached, the flat rate for business expenses is already exceeded by 30 euros. Teachers, for example, can use both the remote and teleworking allowance on the same day if they work at school in the morning and from home in the afternoon.
3. Continuing education and business trips
In addition to the seminar fees for training, travel, parking and, if necessary, food and accommodation costs can be included. 30 cents per kilometre travelled are deductible on arrival and departure. A hotel bill is required to cover accommodation costs. Meal costs can only be claimed in a lump sum. If you are absent for more than 8 hours it is 14 euros, if you are absent for 24 hours it is 28 euros. Of course, the deduction is only possible if the meals were not provided by the seminar organiser or paid for by the employer.
4. Work equipment and furniture
Items that are primarily used for business purposes can be fully depreciated. Common work materials include briefcases, specialist books, office supplies, but also computers, monitors, printers, laptops or mobile phones. If an individual item costs more than 952 euros including VAT, it must be depreciated over several years. Otherwise, the full amount for the year of purchase is taken into account. This also includes equipment for a recognised studio, such as a desk, an office chair, a bookshelf and a desk lamp.
5. Internet and telephony
Whether at the head office or on business trips, the costs of telephone calls can be claimed in various ways. Or simply by deducting 20 percent from the telephone bill, albeit limited to 20 euros per month. Or more complexly from evidence of individual conversations if professional use is greater. Alternatively, an estimate is allowed by quarterly recording and a subsequent annual projection.
6. Study room
If the home office is the centre of your professional activity, the actual expenses are fully deductible. Rent, loan interest, energy and additional costs, property tax and building insurance must be taken into account on a pro rata basis. Alternatively, a flat rate of 105 euros can be claimed for each month in which the activity was the focus of activity for 2023. The recognised studio must be a separate room furnished exclusively for work purposes. A guest bed and a television cannot fit in it.
7. Work-related moving costs
Anyone who moves due to a job change or relocation or who comes closer to their employer with at least an hour of daily travel saved can largely deduct the costs. Deductible expenses include a moving company, a rented transportation vehicle, temporary double rent payments, and trips to view the property or meet with the landlord or agent. This requires collecting invoices. Other expenses, such as tips or cosmetic repairs to the old apartment, are covered by moving expenses.
8. Work clothes
The tax office allows typical professional clothing that cannot be used privately. This includes, for example, uniforms, protective clothing, work overalls or work overalls. However, not only the purchase costs can be claimed, but also the cleaning costs. There are flat rates from consumer associations for washing, drying and ironing at home, which are worth taking advantage of. These flat rates are multiplied by the amount of laundry soiled. Many tax offices accept 110 euros per year without proof if there are indisputable costs for work clothes or their cleaning.
9. Application costs
Expenses incurred in finding an employer can be deducted. Even if you were unsuccessful. According to an estimate by the Cologne Tax Court, online applications can be quoted at 2.50 euros and traditional application folders at 9 euros. However, there is no entitlement to these amounts and the tax office can request more precise information. In addition, expenses for application guides, paid advertisements, XING Projobs, LinkedIn Career, application advice and professional application photos can be submitted via invoices. If there is an interview, travel expenses, parking costs and online subsistence allowances can be claimed with a business trip.
10. Insurance and Memberships
Advertising costs include all types of insurance that cover risks associated with the profession. This includes professional liability insurance, accident insurance at work or insurance for protection of employment law. Since the latter is often offered as part of a legal protection package, the professional part must be excluded. Contributions to professional associations and unions increase advertising costs and therefore a possible tax refund.