(2023) What are income-related expenses?

Business expenses include all costs incurred in direct connection with your professional activity. You can claim these costs for tax purposes, provided they have not already been reimbursed tax-free by your employer.

These include, among others:

• Travel expenses to work (commuting allowance)
• Professional associations (e.g. union fees)
• Work-related items
• Home office
• Training costs
• Application costs
• Relocation costs
• Double housekeeping
• Travel expenses for off-site work
• Bank charges
• Tax consultancy fees

If you do not claim the business expenses individually, the tax office - and also Lohnsteuer kompakt - will automatically apply an allowance of 1,200 Euro. If the claimed costs are below the allowance, the allowance will also be applied.