(2021) What work-related items can I deduct?

As work-related items, you can deduct objects from tax that you use almost exclusively for professional purposes or, if you are self-employed, for business purposes. You can claim the costs as income-related expenses or business expenses. Not all work-related items are always recognised by the tax office. The more specialised a work-related item is, the higher the chance it will be recognised.

Whether you can deduct it from tax depends on your profession and the work-related item. The condition that you use a work-related item almost exclusively for professional purposes is met if it is used for at least 90 per cent for professional purposes. In this case, you may deduct the work-related item in full as income-related expenses.

Until 2009, the all-or-nothing principle generally applied: either the costs were fully recognised or not at all. It was not permissible to allocate costs according to their use for professional purposes - e.g. 70 per cent. However, the Federal Fiscal Court overturned the prohibition on allocation and deduction under section 12 no. 1 EStG in September 2009. After closer examination, the Grand Senate of the Federal Fiscal Court came to the conclusion that it had been mistaken for around 30 years and that the prohibition on allocation and deduction could not be derived from the law (section 12 no. 1 EStG).

This means that today it is possible in many cases to allocate costs that were previously refused for exactly this - incorrect - reason. Costs can be allocated according to objective criteria if the professional usage shares are fixed and not of minor importance (Federal Fiscal Court ruling of 21.09.2009, GrS 1/06, BStBl. 2010 II p. 672).

The following items (examples) can be deducted as income-related expenses depending on the occupational group:

• Typical work clothing
• Computer and software
• Specialist literature
• Desk and office chair
• Filing cabinet
• Briefcase
• Photocopier
• Calculator
• Tools
• Telephone, fax, mobile phone costs
• Office supplies (stationery, pens, paper, files, etc.)

If you pay no more than 800 Euro (net) or 952 Euro (incl. 19 per cent VAT) for a work-related item, you can deduct the entire cost in the year of payment as income-related expenses. However, the work-related item must be independently usable. This is not the case, for example, with a monitor, printer or scanner. These can only be used together with a computer. If you spend more on a work-related item, you must spread the costs over the expected useful life.