If this absence amounts to a full 24-hour day, the lump sum amounts to 28 euros per day. Assuming your employer hasn’t covered the costs, you could claim a room & board lump sum If you’re absent from your primary workplace for at least 8 hours for professional reasons, you could be entitled to compensation. Allowance for Room & Board (Verpflegungsmehraufwand) Alternatively, you can simply declare the costs you paid for yourself. Note: If your employer reimbursed part of the costs for your business trip, you’re required to state so in your tax return. Learn more about business trip costs in our article here. You should also provide proof of any overnight expenses incurred from your business trips as they are fully deductible. If you traveled with public transportation for your business trip or external activities (Auswärtstätigkeit), you can also claim these expenses in full by hanging onto your tickets proving the costs. Unlike the commuter allowance, both the outward and return journeys can be claimed. If you traveled with a motorcycle, mofa, or moped, you can claim 20 cents per kilometer. For such trips, you can claim the kilometer lump sum (Kilometerpauschale) of 30 cents per kilometer traveled. Many employees go on business trips to travel to customers, trade fairs, seminars, other company branches, and more. Proof can be provided by showing fuel receipt and/or train tickets. If the commuter expenses exceed 4,500 euros, they can be deducted in full provided that proof is given. This applies to family trips home as well in the case of double household management (doppelte Haushaltsführung). A maximum of 4,500 euros per year can be claimed with the commuter allowance.Įxception: Those who commute with their own car or a company car can claim more than the maximum amount of 4,500 euros for the allowance. One way to or from work can be claimed per work day, regardless of means of transportation. From 2021 onwards, long-distance commuters can claim an even higher allowance from the 21st kilometer of one-way travel onwards: for the 2021 tax year, 35 cents can be claimed while from 2022 to 2026, 38 cents can be claimed. You can claim a commuter allowance of 30 cents per kilometer for your commutes between your home and primary workplace. Claiming your work commutes: The commuter allowance You can take advantage of various lump sums such as the commuter allowance & kilometer lump sum and sometimes even deduct the actual costs of your expenses. Commuter costsĬommuter costs for business trips, work commutes, trips to job interviews, etc., can all be claimed as income-related expenses on your tax return. You can take advantage of the moving allowance (Umzugskostenpauschale) to claim specific costs without providing receipts. If you moved for professional reasons, the expenses can be completely deducted on your tax return. You can learn more about the income-related expenses lump sum in our article. On the other hand, if your income-related expenses exceed the lump sum, the excess costs can be deducted by claiming and proving them individually on your return. Even if your income-related expenses didn’t reach the full amount or you did not work the entire calendar year, it will still be fully taken into account if you file your tax return. It is not required to provide proof to receive this lump sum. In 2022, it was increased to 1,200 euros per year and from 2023 onwards, it will amount to 1,230 euros. Up until (and including) the 2021 tax year, this lump sum amounted to 1,000 euros. This reduces both your taxable income and your resulting tax burden. When you file a tax return, the tax office (Finanzamt) automatically deducts a lump sum for income-related expenses from your income, this is called the income-related expenses lump sum (Werbungskostenpauschale/Arbeitnehmer-Pauschbetrag). What is the income-related expenses lump sum? If you are self-employed, income-related expenses can also be referred to as business expenses (Betriebsausgaben) and can also be deducted in full. This can include your daily commute to work, application costs, business trips, training or further education, the cost for work clothes, professional insurance, and much, much more. Income-related expenses are incurred to acquire, secure, and maintain income. In German tax law, they are defined as follows: Income-related expenses are defined as expenses that are incurred for the purpose of performing your profession. Here, we’ll explain what exactly you can deduct and how! What are income-related expenses (Werbungskosten)?Įxpenses incurred from your profession can be claimed in full on your tax return as income-related expenses (Werbungskosten).
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