What is a tax return?

A tax return provides information on the income, turnover and asset situation of a taxable legal entity or natural person.

Do I have to file a tax return?

In most cases, as a student you are not obliged to file a tax return, but there are exceptions where you are obliged to do so:

• If you are self-employed or freelance and your income exceeds the basic tax-free amount. The basic tax-free amount varies from year to year. Find out how high it currently is.

• If you have rental income or capital income that together exceed the basic tax-free amount.

• If you were employed by several employers and are therefore in tax class VI.

• If you have entered tax allowances on your income tax card.

By when do I have to submit my tax return?

The deadline for submitting a compulsory tax return for students is usually 31 July. The situation is somewhat different for a voluntary tax return for students. The submission deadline here is 4 years. You would have to submit your 2020 tax return to the tax office by 31 December 2024 at the latest. In order not to take any risks, it is best to always inform yourself about the current deadlines

What do I need for my tax return?

• Tax ID

• Bank details

• Electronic income tax certificate

• Certificate of wage replacement benefits (e.g. unemployment benefit, child-raising benefit, parental benefit)

• Documents on the determination of profits (= comparison of expenses and income at the end of the year)

• Donation receipts

• Tax certificate on creditable corporate income tax; capital gains tax/interest deduction

How do I prepare a tax return?

If you would like to prepare your tax return free of charge, use the tax forms provided by the tax offices or file your tax return via the state online portal Elster. There is also the option of preparing your tax return with the support of special tax software from online providers, but this variant is subject to a fee. In most cases, the software is already specialized in preparing tax returns for students and you simply follow the questions on the questionnaire.

What are ‘Sonderausgaben’ (special expenses)?

‘Sonderausgaben’ include costs that are attributable to private living and cannot be claimed as ‘Werbungskosten’ (=income-related expenses). These include, in particular, contributions to insurances, church tax paid and donations or membership fees.

This includes, for example, the following expenses:

• Initial education (e.g. Bachelor's degree)

• Health & nursing care insurance

• Accident & liability insurance

• Statutory & private pension insurance

• Pension scheme & old-age funds

• Riesterrente

• Church tax

• Donations & membership fees to non-profit associations (no leisure associations)

‘Sonderausgaben’ reduce the total amount of income and are limited to a maximum of €6,000 per year. In addition, special expenses must always be accounted for in the same year in the student tax return. As with ‘Werbungskosten’ (=income-related expenses), it is not possible to allocate them to future years. The lump sum that you are entitled to if you have no receipts for your special expenses is only €36. Therefore, if you have higher special expenses, it is advisable to keep receipts for a possible tax audit (for seven years) so that you can submit them later if necessary.

As a first-degree student, you can only deduct your study expenses as ‘Sonderausgaben’, i.e. limited to a maximum of €6,000 in one year.

As a student in secondary education, for example as a student in a Master's programme, but also as a student in a dual programme, you can deduct the costs incurred by your studies as income-related expenses.

What are ‘Werbungskosten’ (income-related expenses)?

‘Werbungskosten’ include all costs incurred in secondary education and can be claimed as expenses in an unlimited amount. They do not have to be offset in the same tax year, but are allocated to subsequent years in the form of a tax credit as a kind of tax bonus.

‘Werbungskosten’ include:

• Semester fees including the amount for the semester ticket as well as other travel costs for the way to the university, to learning communities and to the internship

• Tuition fees Expenses for working materials such as specialist literature, office supplies and notebook, specialist literature and working materials (folders, writing utensils, etc.)

• Expenses due to travel to the university or library

• Study trips and excursions

• Semester abroad or internships

• Printing and binding of final papers and seminar papers

• Printers, laptops, smartphones, etc.

• Interest on a student loan

Especially for higher expenses during your studies, it makes sense to keep receipts that can be submitted when needed, such as the invoice for a new laptop or printer. Certain expenses are covered by the flat-rate study allowance, which can be claimed without having to submit proof. For example, the lump-sum allowance for additional meals of 24 euros per day for expenses relating to study trips or internships, or the lump-sum allowance for work equipment of 110 euros per year for pens, folders or calculators.

It may be worthwhile to file a voluntary tax return:

• You can file your tax returns for your studies up to 4 years in arrears.

• In the best case, you can deduct thousands of euros, even if your income is considered an expense.

• You can claim many costs without receipts by means of lump sums

• You can quickly submit a tax return online with the help of tax software, even without prior knowledge. •You can add up losses from your time at university and have them credited to you as soon as you pay taxes for the first time.

• You can add up losses from your time at university and have them credited to you as soon as you pay taxes for the first time.

If you would like to learn more tips on the topic of studies and career, please read our other blogposts. There we give you interesting information on how to write a CV or prepare for a job interview.