The question frequently arises whether expenses for one's own vocational training are deductible as business expenses (Werbungskosten) or as special expenses (Sonderausgaben). We clarify this in the following text.
Basics: Deductibility of training costs
For expenses relating to job-related educational measures, tax law distinguishes between training and continuing education costs, which are generally fully deductible as Werbungskosten, and the costs of initial vocational training (Erstausbildung), which are deductible only on a limited basis up to a cap (EUR 6,000) as Sonderausgaben. The tax authorities define an Erstausbildung as the first apprenticeship/vocational training or the first course of study undertaken to acquire the knowledge required for later professional activity. An Erstausbildung is further subject to the requirement that it lasts at least 12 months and is concluded with a final examination. If such training (e.g. school-based vocational training or a Bachelor's degree) with a minimum duration of 12 months has already been completed, the costs of any subsequent training (e.g. a Master's programme) or another course of training or study can be classified as Werbungskosten. An interruption or change of programme without a prior degree, however, does not constitute a completed initial course of study. An exception applies where the taxpayer is undergoing training/studies within the framework of an employment relationship (e.g. apprenticeship as an electrician or a dual-study programme) and receives a salary. In such a case, the training costs can already be classified as Werbungskosten during the initial training/initial studies, as they are directly connected with income from employment (§ 19 EStG).
The reason why classifying training costs as Werbungskosten is advantageous lies in the fact that Sonderausgaben are generally only deductible if the taxpayer also has income. Werbungskosten, by contrast, may be deducted even where income is low or non-existent, provided they are connected with the profession subsequently pursued. Furthermore, classifying training costs as Werbungskosten may allow a loss carryforward where the training expenses exceed the income received in the relevant calendar year. If higher income is later earned in the course of professional life, these loss carryforwards can be offset. In addition, the deduction of training costs as Sonderausgaben under § 10 Abs. 1 Nr. 7 EStG is subject to a cap of EUR 6,000 per calendar year.
Deductible costs
In principle, the following expenses for job-related educational measures may be claimed in the income tax return:
- Interest paid on educational loans (e.g. BAföG)
- Tuition fees and semester contributions, etc.
- Expenses for work equipment (e.g. computer, desk, desk chair, etc.)
- Travel costs to the place of training or university
- Application costs for a study place, semester abroad, etc.
- Relocation costs
Frequently asked questions
Frequently asked questions
When are training costs deductible as income-related expenses?
Training costs are deductible as Werbungskosten (income-related expenses) if a completed initial vocational training (lasting at least 12 months and concluded with a final examination) already exists and the further training builds on it, for example a master's degree following a bachelor's. Costs incurred during training under an employment relationship (e.g. a dual study program or apprenticeship with wage payments) are also deductible as Werbungskosten during the initial training, since there is a direct connection with income from employment.
Up to what amount are initial training costs deductible as special expenses?
Under § 10 Abs. 1 Nr. 7 EStG, costs for initial vocational training can only be claimed as special expenses up to a maximum of EUR 6,000 per calendar year. A deduction is also only possible if the taxpayer earns income in the same year.
Why is deducting expenses as Werbungskosten (income-related expenses) more advantageous than as Sonderausgaben (special expenses)?
Werbungskosten can be claimed even with no or low income, provided there is a connection to your future profession. If they exceed your income, a loss carryforward is possible and can be offset against higher income in later years. Sonderausgaben, by contrast, are forfeited if no income exists and are capped at EUR 6,000 per year.
What requirements must initial training meet for tax purposes?
For tax purposes, initial training must last at least 12 months and conclude with a final examination. A mere interruption or a change of degree program without prior completion does not count as a completed initial degree and therefore does not allow subsequent educational measures to qualify as income-related expenses (Werbungskosten).
Which expenses can be claimed as training costs in a tax return?
Deductible items include interest on education loans (e.g. BAföG), tuition fees and semester contributions, work equipment such as a computer, desk and office chair, travel costs to the place of training or university, application costs (for example for a study place or a semester abroad), and relocation expenses related to the training.