Tax deductibility
How you can deduct your course fees
Tax deductibility
How you can deduct your course fees
Is distance learning tax deductible?
The tuition fees for a PhDr. or PaedDr. distance learning program are tax deductible. This means you can reclaim up to 50 percent of the continuing education costs from the tax office.
The state indirectly contributes to the costs of PaedDr. or PhDr. distance learning courses through tax reductions. This is because part of the expenses incurred for distance learning can be reclaimed via your tax return. In order to claim a tax deduction, the course must be closely related to your profession.
If you begin the distance learning course in the current calendar year, the training costs can already be claimed on your tax return in the first quarter of the following year. The key factor is the date the course fee was paid. For example, if you start the course in December and pay the full training costs at the beginning, you can claim the entire amount for tax purposes. Through the tax adjustment process, the tax office may refund up to 50% of the training expenses, significantly reducing the financial burden
According to income tax guidelines, tax deductibility is also possible for the following educational institutions, among others: technical colleges, university courses, teacher training colleges, and postgraduate studies. In order to be eligible for tax relief, an academic course must meet one of the following three requirements:
– Continuing education in the existing professional field –
The individual is already engaged in a professional activity, and continuing education improves the knowledge and skills required to perform that activity.
– Training in a related profession –
Training provides the knowledge and skills needed to pursue a future career. A tax deduction may be available if the training is directly related to your current profession.
– Retraining –
Retraining measures are so comprehensive that they enable participants to enter a new profession. The aim is to enable participants to pursue a different profession that is unrelated to their previous occupation.
Compared to retraining, education and training costs do not have to be “comprehensive,” which means that individual job-specific training segments can also be deducted for tax purposes as operating expenses or advertising costs.
In general, all costs related to training or further education are fully deductible. The following costs are taken into account in particular:
- Actual course fees (course fees), application materials
- Costs for documents, technical literature, office supplies
- Costs for “work equipment” (e.g., PC costs, Internet costs)
- Travel expenses in the amount actually incurred (e.g., mileage allowance of €0.42/km for your own car)
- At most, daily allowances (€26.40 for the first five days if the course does not take place at the place of residence or work)
- Accommodation costs (including breakfast) at the actual amount or a flat rate of €15.00 per night.
Mainly, educational costs can be deducted in Germany in a similar way to Austria. A PaedDr. or PhDr. education is considered secondary education. and meets the requirements for this. In addition, the further training must not be undertaken purely out of personal interest, but must be related to a current or future job and the resulting income.
The costs usually reduce tax liability in the year in which they were paid. It is important to note that the tax savings can only be claimed if wage or income tax is paid.
The tax-free basic income is at least €12,600 per year for employees and €11,000 for self-employed individuals. Therefore, no tax savings can be claimed in years of marginal employment or part-time employment.
Therefore, ideally, the course fees should be paid in the calendar year in which the higher marginal tax rate applies.
Income tax rates and marginal tax rates in Austria (from 2020):
Our course advisor will be happy to help you with any questions you may have about tax deductibility:
Mag. Christina Tschikof
Course Advisor
studienberatung@pobs.at
0043 1 361 98 84 0
Tax deduction for training costs
In addition to the course fees, there may be additional costs, such as the purchase of specialized literature. Part of the training expenses can be claimed as business or income-related tax deductions. The amount of this contribution depends on your income and corresponding personal tax rate. Tax reductions can be as high as 50%, significantly easing the financial burden of a PaedDr. or PhDr. degree
Self-employed individuals
Expenses for continuing education can be claimed as business expenses on your income tax return.
Employees:
Expenses for continuing education can be claimed as income-related expenses on your employee tax return.
Tax deduction for training costs
In addition to the course fees, there may be additional costs, such as the purchase of specialized literature. Part of the training expenses can be claimed as business or income-related tax deductions. The amount of this contribution depends on your income and corresponding personal tax rate. Tax reductions can be as high as 50%, significantly easing the financial burden of a PaedDr. or PhDr. degree
Self-employed individuals
Expenses for continuing education can be claimed as business expenses on your income tax return.
Employees:
Expenses for continuing education can be claimed as income-related expenses on your employee tax return.
Financial aid for students
There is a variety of funding opportunities for distance learning course fees at both federal and state level. We have summarized the most important information about funding options for you, depending on your location.
Do you have questions about the tax deductibility of your course fees?
Contact our course advisor:
Mag. Christina Tschikof
Course Advisor
0043 1 361 98 84 0