How does the commuter allowance work and how can I make use of it?
August 27, 2023 | 40,00 EUR | answered by Anneliese Schaaf
Dear tax advisor,
my name is Benjamin Buchner and I commute to work by car on a daily basis. I am currently wondering how the commuter tax deduction works and how I can make the most of it.
I am currently working at a company that is about 30 kilometers away from my home. It takes me an hour to travel this distance every day. Since I have no alternative but to rely on my car, I am dependent on it for my daily commute.
Naturally, there are costs associated with my daily commute that I would like to claim as tax deductions. However, I am unsure of how exactly the commuter tax deduction works and how I can include it in my tax return. I am concerned that I might make a mistake and potentially lose out on money.
Could you please explain to me how the commuter tax deduction is calculated and what requirements I need to meet in order to claim it? Are there specific documents I need to gather to include the commuter tax deduction in my tax return? And do you have any tips for me to maximize my use of the commuter tax deduction?
Thank you in advance for your assistance.
Sincerely,
Benjamin Buchner
Dear Mr. Buchner,
Thank you for your inquiry regarding the commuter allowance. I am happy to explain to you how it works and how you can make the most of it.
The commuter allowance is a tax benefit for employees who travel to work daily with their own vehicle. It allows you to deduct a portion of the costs for your commute to work from your taxes. The commuter allowance is granted per distance kilometer between your place of residence and your workplace. Currently, it is 0.30 euros per kilometer.
In your case, if you travel 30 kilometers to work every day, you could claim an annual commuter allowance of 30 km x 0.30 euros = 9 euros per working day. With 220 working days in a year, this adds up to a total of 1,980 euros that you can deduct from your taxable income. This deduction leads to tax savings.
To claim the commuter allowance in your tax return, you should collect all relevant receipts that prove your travel expenses. These may include fuel receipts, repair bills, insurance premiums, and other expenses related to your commute. It is important to keep these receipts safe and be able to present them to your tax advisor or the tax office when needed.
To make the most of the commuter allowance, I recommend exploring alternative transportation options for your commute to work. Perhaps there are carpooling opportunities or public transportation options in your area that can help you save costs. In some cases, using public transportation may be more economical than driving your own car.
In summary, the commuter allowance is an attractive way to deduct your commute expenses from your taxes. By collecting all relevant receipts and exploring alternative transportation options, you can maximize the commuter allowance and reduce your tax burden.
I hope this information is helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Anneliese Schaaf
Tax Advisor
