Deduct travel expenses: How to save on tax

Only a few lucky people live within walking distance of their workplace or work from home. Most of us have to travel to work - whether by car, bike or public transport. We all know the stress that the daily commute can cause: long traffic jams, overcrowded trains or delays. This not only costs time, but often also nerves and money.

Whether you travel to work by car, train or bike, travel costs can be a significant expense. The good news is that you can claim these costs on your tax return and save tax as a result. In this article, you'll find out exactly what travel costs are, how the commuter allowance works and what you need to pay attention to in order to get the most out of your tax return.

What does it mean to deduct travel costs or the commuter allowance in the tax return?

Travel costs are the expenses you incur to get to work: this could be the gasoline for your car, the train ticket you pay for or the time you spend cycling. The best-known form of tax relief is the commuter allowance. It applies to all these means of transport and allows you to deduct a certain amount per kilometer between home and work for each working day. It is easy to calculate and can be declared in your tax return. 

The current regulations provide for

• 30 cents per kilometer for the first 20 kilometers
• 38 cents per kilometer from the 21st kilometer

Source: Finanztip.de ‍

This flat rate applies regardless of which means of transport you use - whether car, bicycle or public transport. However, you can only specify the one-way journey, not the outward and return journey.

‍Deducting travel expenses- what you need to bear in mind

‍Thereare a few important things you need to do to declare your travel expenses correctly in your tax return:

1. Prove your commute to work: Your commute must be realistic and regular. A one-way distance of 50 km to work is plausible, 200 km a day must be well justified. You may be asked to provide proof (e.g. the receipt of the train ticket).
2. Only working days count: Only the days on which you actually went to work count - vacation or sick days may not be included.
3. Consider additional costs: Did you buy a job ticket or a train ticket for the route? These costs can also be taken into account in certain cases.
4. Employer allowance: If your employer already covers travel costs, you can only claim the difference for tax purposes.

If you are new to Germany and would like to have your driving license converted, for example, you can find helpful instructions here: Converting your driving license in Germany.‍

Example calculation for travel costs in the tax return

‍Supposeyou live 25 km from your workplace and drive to work 220 days a year.

• 20 km × 0.30 Euro = 6 Euro per day
• 5 km × 0.38 Euro = 1.90 Euro per day
• Total per day: 7,90 Euro
• For 220 days: 1,738 euros per year

You can declare this amount as income-related expenses in your tax return and thus reduce your tax burden. Math has never been your strong point? Don't worry! Most tax return tools in Germany (e.g. TaxFix, also available in English) will automatically calculate how much you can deduct if you tell them your home and work address and the number of days you commute per week.

‍Moretips on tax returns and the world of work in Germany

‍Thetax return can seem complicated, but it's worth it. There are interesting tax deductions, especially for employees in skilled trades or industry. If you are interested in salary negotiations, you can find helpful tips here: Salary negotiation in the skilled trades. Or would you like to know what electricians earn? Then take a look here: What is the salary of electricians?.Looking for a new job? WorkerHero offers exciting job vacancies and helpful articles on taxes, employment law and careers. Take a look and start your professional future!