How can I save taxes as a student?
March 18, 2023 | 50,00 EUR | answered by Ulrike Voss
Dear Tax Lawyer,
My name is Fred Ratzberg and I am a student in the final year of my studies. This semester, I have started working as a working student on the side to finance my studies and save some money for the future. Since I don't earn much as a student, I am thinking about how I can save taxes to maximize my income.
Currently, I am working as a working student in a company and earning around 800 euros per month. I have heard that there are various ways for students to save taxes, such as through the standard deduction for job-related expenses or the possibility to deduct work-related expenses. However, I am unsure about how to specifically utilize these opportunities and if there are any other tax benefits for students that I am not aware of.
My concern is that due to my lack of knowledge, I might be missing out on tax benefits and end up paying more taxes than necessary. Therefore, I would like to know from you what specific actions I can take as a student to save taxes and optimize my income. Are there any specific regulations or tips that I should consider in my case?
I would greatly appreciate it if you could help me optimize my tax situation as a student and maximize any tax benefits. Thank you in advance for your support.
Sincerely,
Fred Ratzberg
Dear Mr. Ratzberg,
Thank you for your inquiry and interest in ways to save taxes as a student. It is important to deal with the topic of taxes early on in order to not miss out on potential tax benefits and to optimize your income. I am happy to give you some tips and information on how you can save taxes as a working student.
As a working student, you generally have the opportunity to deduct flat-rate expenses and also work-related materials. The flat-rate expenses for students are usually 1,000 euros per year. This means that you can automatically deduct 1,000 euros from your income without having to submit receipts. This can be especially helpful if you have additional expenses for commuting to work, professional literature, or work-related materials. You can also deduct these costs from your taxes as long as you keep the receipts.
Furthermore, you should check if you are eligible to apply for a reduction in wage tax. As a student, you may be able to benefit from allowances that reduce your tax burden. This includes, for example, the allowance for educational expenses or the carry-forward of losses from a previous year. It is therefore worthwhile to file an income tax return in order to claim these allowances and potentially receive a tax refund.
Another important point is health insurance as a working student. As a working student, you are usually covered by family insurance through your parents as long as your monthly income does not exceed a certain amount. Make sure not to exceed the limit in order to avoid having to bear additional costs for your own health insurance.
Additionally, there is the option to invest the income from your working student job in a tax-optimized manner. For example, you could invest a part of your income in a Riester pension or company pension scheme to take advantage of tax benefits and at the same time provide for your future.
Overall, it is important for you to deal with your tax situation early on and to systematically use opportunities to save taxes. It may be worthwhile to consult a tax advisor or lawyer specializing in tax law to receive individual tips and recommendations for your situation.
I hope this information helps you and that you can optimize your tax situation as a student. If you have any further questions, please feel free to contact me.
Best regards,
Ulrike Voss, lawyer specializing in tax law
