Strategies for college students to boost savings: Efficiently Manage Your Money
Filing Tax Returns as a Student in Germany: A Comprehensive Guide
Filing a tax return, or Steuererklärung, is a crucial step for students in Germany who want to claim tax benefits and potentially receive a refund on withheld income tax. Here's a simplified guide to help you navigate the process.
Why File a Tax Return?
Even if you have little or no income, as a student, you can still claim tax benefits by filing a tax return. This is especially beneficial if you have study-related expenses such as tuition fees, commuting costs, and research trip expenses.
What Can You Deduct?
Deductible expenses for students include tuition fees (up to €6,000 per year for the first undergraduate degree), additional classes or tests, computer and electronics used for study, commuting costs, research trip expenses, and more. However, remember that many of these deductions require proof and receipts.
Steps to Claim Benefits
- Gather Evidence: Collect all receipts and proof of study-related expenses.
- Prepare Your Tax Return: Use a tax software or tax app to prepare your tax return. Examples include SteuerGo, Wundertax, and WISO Steuer.
- Submit Your Tax Return: You can submit your tax return online or on paper to your local Finanzamt.
- Wait for Reassessment: The Finanzamt will reassess your tax and issue a refund if applicable.
Important Considerations
- If you have income from part-time jobs, understand the basic tax-free allowance (Grundfreibetrag), which is €12,096 in 2025. Income below this is effectively tax-free, but tax is often withheld monthly by employers. Filing a tax return allows you to reclaim withheld taxes if your annual earnings are below the threshold.
- If you have more than one minor employment, health insurance will be charged retroactively.
- If your place of study is more than 80km away from your parents' place of residence or the fastest public transport connection takes longer than one hour, your parents can apply for a monthly tax allowance of 110€.
Additional Tips
- Receipts for expenses related to studies should be kept for seven years for potential tax office checks.
- If you earn more than 12,000€ per year, you can claim tax benefits for advertising costs related to your studies.
- If you have to pay social security contributions retroactively due to several minor employments, you can reclaim a part of it via the negative tax.
- The ÖH tax consultation offers support on employment relationships, income limits, negative tax, etc.
- The Chamber of Labor's website provides extensive information about the financial conditions and situations of students.
Remember, filing a tax return is advisable even when income is low, as many students receive refunds from withheld income tax or qualify for deductions. So, take the time to understand the process and potentially save yourself some money!
- To maximize the potential refund on withheld income tax and claim tax benefits for personal-finance, students in Germany should file a Steuererklärung (tax return) by collecting receipts and proof for study-related expenses such as tuition fees, commuting costs, and research trip expenses under the category of education-and-self-development.
- After filing the tax return, students can take advantage of deductions on education-and-self-development expenses, which include tuition fees, additional classes, computer equipment, commuting costs, and more, and potentially receive a refund on withheld income tax.
