Why you should definitely make a tax return as a student
Many students do not know that it is worth submitting a tax return even if they are not working. This is because if your annual expenses for your studies are higher than your income, the resulting loss will be deducted from your first job after graduation. If you are working, you are even legally obliged to submit such a declaration to the relevant tax authority. Otherwise you will have to expect unpleasant additional payments and even penalties.
MOST IMPORTANT INFO:
- The new submission deadline since 2019 is July 31 of the following year at the tax office where you currently reside.
- You will find the required forms at your Tax office or via your Elster account.
What you need to consider as a student when filing your tax return
If you work as a student assistant, for example, your employer is obliged to pay income tax to the tax office on your behalf. You will receive part of the amount withheld back after submitting your income tax return. If you have a 450 euro job (mini-job), you do not have to submit a tax return because your gross annual income is below the tax-free limit of 9,168 euros (tax-free limit 2018: 9,000 euros) and your employer only pays a lump sum to the tax office for you. Nevertheless, submitting a voluntary tax return can have a positive effect for you later on. If you work as a self-employed courier driver or babysitter alongside your studies, for example, and generate income of more than EUR 9,168 per year, you will have to pay tax on the amount in excess of this sum. The same applies if you have interest income from capital assets or income from renting and leasing that exceeds this student tax allowance. You must also disclose your income if you are a member of tax class VI and work for more than one employer or if tax allowances are noted on your income tax card. As a student on a dual study program, you are obliged to submit a tax return anyway if your annual income exceeds the tax-free amount for students. The same applies to working students. If your employer pays tax, solidarity surcharge and social security contributions for you, even though you are not liable to pay income tax as a working student, you have the right to carry out an annual wage tax adjustment and reclaim the withheld wage tax. As a student, you also have to pay income tax on income from paid internships if you exceed the tax-free limit.
What you can deduct from tax
As a student on a dual study program, you have the opportunity to claim your study costs as income-related expenses for tax purposes. These include:
- Workwear
- Working materials
- Travel between home and university or place of training/internship (semester ticket or commuter allowance)
- Study materials (textbooks, special software, calculators, photocopies)
- Tuition fees
- Costs for necessary language courses
- Examination fees
- Moving costs
- BAföG interest, even if it only accrues later
- Costs for double housekeeping if you have your own home.
Double housekeeping is when you study away from your parents' home, have an apartment at your place of study but travel home every weekend. If you have your own room there, you can deduct your rent and regular travel costs from your taxes. - If your course of study includes excursions, you are entitled to claim the travel expenses incurred for these as well as additional per diems for meals.
- If you need extra tuition to successfully complete your university studies, you may also add these expenses to the mandatory study costs.
- If you also use your computer and cell phone privately, you can deduct at least part of the money spent on them from your tax bill.
If you do not immediately benefit from tax savings by declaring your income-related expenses, you can deduct them from the taxes payable on your first taxable job after graduation. You enter the income-related expenses in Appendix N of your income tax return and also tick the box to determine the remaining loss carryforward on the form. To ensure that your statement is as accurate as possible, you should keep all invoices and receipts relating to study costs and, if necessary, make a note of the item purchased. If you do lose receipts, you can claim the lump sum for them instead. This amounts to 764 euros per year for a necessary move during your studies and 240 euros per year for the use of telephone and internet. You claim a flat rate of 24 euros per day for internships.
When a loss carryforward is possible
If you have completed an apprenticeship or opted for a dual or Master's degree course before starting your studies, these count as further education or a second degree. You can enter the expenses incurred for this in your tax return as income-related expenses and make a loss assessment (loss carryforward) every year if you have a mini-job or do not work at all. Later, you can add up the losses carried forward accumulated over the years and then declare the total on your first income tax return after starting your real job. They will then have a tax-reducing effect. If you start studying for a Bachelor's degree straight after leaving school, you cannot carry forward any losses. However, you have the option of listing study costs up to a maximum of 6,000 euros per year as special expenses on your next income tax return.
What you need to bear in mind for short-term employment
Short-term employment is defined as employment relationships of a maximum of 70 days or two months per year that are not carried out on a professional basis. This includes seasonal work in the agricultural sector and Promotion-jobs. If you take up such a temporary employment relationship without social security contributions as a student, you must pay income tax if your gross salary in tax class I exceeds the basic tax-free allowance of 764 euros per month. However, if you are in tax class VI, you cannot claim this allowance and will have to pay higher taxes. The amount of income tax withheld from your earned income also depends on how your employer calculates the Short-term employment is calculated. If you pay income tax on a daily basis, your salary will be extrapolated to the entire month and you will have to expect significantly higher taxes on this fictitious income. Most agencies already calculate the wages actually earned on a monthly basis. What is important for you is that you can have the excess tax paid refunded on your next income tax return. If your annual income as a student is less than 9,168 euros, the tax office will pay you back the entire tax anyway. If you work for TRUST Promotion, this is also considered short-term employment. In addition to this job at TRUST Promotion, as a student you may of course have other short-term employment relationships as long as you do not exceed the annual 70-day limit. If you are employed by TRUST Promotion as a hostess or promoter, it will withhold income tax and solidarity surcharge for you. You can then reclaim these in full or in part on your next income tax return, depending on whether your annual income from TRUST Promotion is below the tax-free allowance or not.
