Work-Related Travel Cost Refund, a Standard Amount for Everyday Routes

Definition, Explanation

In Germany, for one’s daily travelling to work, one can get a tax reduction by a fixed sum per kilometer of the optimal way to work, as income-related expenses – no matter what one’s real costs are, or what one’s actual way to get there is.

This whole definition which is often confused, is comprised in the single terms of Pendlerpauschale, or Entfernungspauschale, both referring exactly to the fixed sum of refund per kilometer. As little as the spatial route you take matters, as little matters what means you choose to travel, be it your car, buses, rails, taxis, a bike, or going on foot!

The conditions in particular:

30 cents per kilometer of distance on the optimal route = Entfernungspauschale (distance standard amount)
Public transport costs can be reduced from tax with the actual expense values in case they exceed the distance standard amount
The total one year’s amount to reduce from tax has an upper limit of 4,500 Euros for the use of public transport. However, for the use of a car, be it one’s own or another’s, amounts reduced can be higher, for which the travelling costs have to be certified by fuel bills and repair bills
If you report having travelled on more than 230 days of the year and you work 5 days a week, same for 280 travel days and 6 work days a week, then the revenue will normally demand certification. Your employer can give that to you. The German keyword is the Nichtaufgriffsgrenze
The distance standard amount regulation applies to every person, independent of the means of travelling, also applying to all participants of a car sharing pool
The calculation of the total amount reduced from tax is the optimal being the shortest route. A longer one is validated on request if it is easier traffic-wise and is one of the traveller’s regular routes. For several places to work, distances are counted accordingly
In principle, only one time travelling counts for one work day, even if you travel several times
If you have several places of residence, you can use the farther distance only if it is your main residence
If you officially run two households to avoid frequent commuting, you can also have your long ways home according to the same distance standard amount
You receive child benefit during your apprenticeship only if your children’s incomes are equal or less than 8,004 Euros total, and that critical income limit is even lower if you decide for the travel cost tax reduction option, in this case
Money from the employer for respective work-related travelling must be taken into account as to be not reduced from tax
Flight travelling will not be counted in any way, in the distance standard amount regulation
All these regulations apply back to dates from Jan 1 2007
For disabled:
With a degree of disablement of 70 or higher, you can have 30 cents each actually travelled kilometer reduced from tax. Additionally, any parking fee at your workplace

The distance standard amount regulation adds up on the employees’ default lump sum of income-related expenses to reduce from tax. If that one is exceeded, then the taxable base amount is reduced further, by the according amount caused by the distance standard amount, affecting the final tax amount.

Tips, Checklist

If your income-related expenses are higher than monthly 920 Euros, then you can have a partial exemption entitlement from income tax noted down on your income tax card
As a self-employed, you are entitled to have distance standard amounts reduced from tax if the vehicle you use is part of the company assets

Last update: 01/19/2012

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