As it is usually the case, the Bachelor's degree counts as a first degree. If you have previously completed a vocational training programme, the Bachelor's degree is a second degree. Master's, additional or postgraduate degree programmes that build directly on the Bachelor's degree are part of initial training. This also applies to a subsequent doctorate. However, if you have several professional years between the Bachelor's degree or change your specialisation, it counts as a second degree.
Many students work part-time, especially during the lecture-free period. If you earn more than 520 euros a month, you will have to pay taxes and social security contributions. However, if your annual income remains below 12,138 euros (10,908 euros tax-free allowance plus 1,230 euros flat-rate allowance for business expenses), you can get back the taxes you have paid by filing a tax return. If you have a higher income, including capital gains, you have to pay tax but can deduct the costs of your studies.
For example:
- Semester ticket
- Work materials such as office supplies, computer, printer
- Internet fees
- Textbooks
- Language courses
- Health insurance
- Home office allowance
- Moving costs
Fees for first degree programmes are considered special expenses. Up to 6000 euros can be deducted per year. These costs are entered in the tax form under ‘Special expenses’. In the second degree programme, these expenses are income-related expenses and can be deducted without limit. These are entered in the tax return under ‘Annex N’.
Rental costs can be claimed as part of ‘double housekeeping’ in ‘Annex N double housekeeping’. Necessary furnishings and household effects as well as accommodation costs of up to 1000 euros per month are reimbursed. However, the place of study must not be the ‘centre of life’. Students must have another primary residence and bear at least 10% of the running costs there. As a rule, these costs must be proven to the tax office with bank statements.
Whether students deduct their costs as special expenses or income-related expenses makes a big difference. Special expenses can only be offset against income in the respective year. Income-related expenses, on the other hand, can be accumulated and carried forward year after year.
Accumulation makes sense if the study costs are higher than the salary, resulting in a loss that can be carried forward to subsequent years.
Example:
A student has 5000 euros in wages and 6000 euros in study costs per year. She then has a loss of 1000 euros per year. Although she does not have to pay tax, she should submit a tax return to establish this loss. In this way, she can start her career with a loss of 2000 euros and deduct this from her salary in her first year of employment.
If you work on a voluntary basis, for example as a treasurer in an association,
up to an additional 840 euros per year are tax-free.
