Tax break for ongoing skill development

In Germany, employees and self-employed entrepreneurs are offered tax advantages when pursuing education and professional development. Here's a breakdown of the key points regarding tax deductible expenses:

Deductible Expenses for Initial Education

The costs for a study, including study materials and additional costs related to the course, can be deducted once with an amount of up to 6,000 euros for initial education.
The minimum duration for initial education to be eligible for tax deduction is 12 months and it must be completed full-time with a final exam. Most bachelor's degree programs meet these criteria.
Exam fees, accommodation and subsistence costs, and travel costs can also be considered as special expenses for initial education.
A certificate from the employer confirming it is the first measure and professional education is recommended to be presented for initial education tax deduction.

Deductible Expenses for Second Education or Further Training

Expenses related to a second degree or further education degree can be deducted without limit as income-related expenses (Werbungskosten), meaning these costs can fully reduce taxable income.
This includes costs for the course, study materials, travel expenses, textbooks, tutorial costs, and interest on student loans.

Other Special Expenses

Other special expenses that may be deductible include costs related to the course, such as consultation fees from a tax expert.
Documenting costs is beneficial for saving taxes, particularly in the area of special expenses.

Eligibility Criteria

The prerequisite for deducting costs as special expenses is that the employee's annual income exceeds the basic tax-free allowance and that income tax is payable.

Online Resources

Online tax portals can help guide you through the process of tax deductions and are relatively inexpensive.

In summary, Germany offers significant tax advantages for those pursuing education and professional development. By understanding the eligible expenses and meeting the criteria, individuals can save a substantial amount on their taxes. Consulting a tax expert can also have a positive impact on the tax return result.