2024 Tax Deductions in Germany: Complete Guide for Expats and Residents
Filing taxes in Germany involves understanding various deductible expenses that can help reduce your tax burden. Here's a comprehensive guide to tax deductions for 2024.
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Work-Related Deductions:
- Office supplies and work-related literature
- Job application expenses (postage, photocopies)
- Training courses and language classes
- Professional relocation costs
- Bank account maintenance fees (€16 annual lump sum)
Commuting Expenses:
- 30 cents per kilometer for first 20km (one-way)
- 38 cents per kilometer from 21st kilometer onwards
- Applicable regardless of transport method (driving, cycling, walking)
Internet and Phone:
- 20% of monthly costs up to €20 per month
- Applies to private internet, telephone, or smartphone used for work
Home Office Deductions:
- Full deduction if home office is primary workplace
- Annual lump sum option of €1,260 available
Insurance Deductions:
- Social security contributions (both employee and employer portions)
- Health insurance
- Long-term care insurance
- Unemployment insurance
- Pension insurance
- Personal liability insurance (proportional amount)
Additional Deductible Expenses:
- Household services (plumbers, electricians, cleaners)
- Childcare costs up to €4,000 per child (increasing to €4,800 in 2025)
- Charitable donations
- Work-related moving costs (€964 flat rate for singles in 2024)
- Private moving costs up to €4,000
- Capital gains allowance of €1,000 (Sparer-Pauschbetrag)
Important Requirements:
- Keep all receipts and documentation
- Payments must be made via bank transfer for household services
- Work-related moves must save at least one hour in commute time
- All deductions subject to specific conditions and limits
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Two freelancers using iPads at desk