(2021) Which accident-related costs can I deduct?

If you have an accident during a work-related journey, you can claim the resulting costs as business expenses in your tax return. In addition to accident costs, you can also claim other expenses if your car is damaged or stolen. You can claim, for example, the following expenses:

• Repair costs
• Hire car costs
• Theft of car radio
• Compensation payments for third-party damage
• Costs for experts, lawyers, and courts
• Recovery costs
• Towing costs
• Expenses for trips to the garage, expert, etc.

If you receive a reimbursement from a third party, you must deduct this from your accident costs if you receive the reimbursement in the year of the accident or in the year the accident costs were paid. If you receive the reimbursement later, you must declare it as income. The tax office usually requires the following evidence:

• Accident location and time
• Police report of the accident
• Proof of insurance payments
• Witnesses, if applicable
• Invoices showing the repair costs

Note: Although the tax courts and the Federal Fiscal Court consider accident costs to be covered by the travel allowance, the tax authorities have repeatedly instructed tax offices to recognise accident costs in addition to the travel allowance if they occur during a journey between home and the first place of work or on a family commute to be taken into account. This was most recently stated in the BMF letter dated 31.10.2013 (BStBl 2013 I p. 1376), under number 4. The BMF can rely on the legislator in this regard, as the explanatory memorandum to the amendment of § 9 para. 2 EStG also states that "accident costs are to be taken into account again as extraordinary expenses in addition to the travel allowance" (BT-Drucksache 16/12099 dated 03.03.2009, pages 6 and 8).