Employees in Germany

German Tax Advantages Doctorate Degree

The acquisition of a doctorate degree or doctorate studies often exposes you to much more lucrative job opportunities than a bachelor's or master's degree.

The acquisition of a doctorate degree or doctorate studies often exposes you to much more lucrative job opportunities than a bachelor's or master's degree. Therefore, it is not surprising to find many students starting to work on their dissertations immediately after such a degree and are aiming for a Ph.D. This often results in some insignificant costs, but they can be claimed as professional expenses with the correct argument in your tax return. As a general rule, these costs should exceed the annual lump sum of 1,000 Euros for professional expenses and are therefore very beneficial in the calculation of the tax burden for the respective year. It is, therefore, worthwhile to collect and carefully store evidence of costs incurred in connection with your doctorate degree.

You can enter these costs related to your doctorate as professional expenses in Appendix N

By working on your dissertation and subsequently your doctorate degree, you can incur a variety of costs that you can then use as professional expenses. These include:

  • A computer required for the work
  • Paper and printing costs
  • Any required software
  • Travel costs related to the doctorate
  • Your semester fees
  • All the materials you need for your doctoral thesis
  • And much more.

If you are not sure whether you can charge certain costs for your doctorate degree, please consult a tax consultant or an income tax assistance union for legal advice.

You must meet these requirements for your costs related to your doctorate degree to be recognized by the tax office

In order for the tax office to accept the costs of your doctorate degree as professional expenses, certain conditions must be met. The doctorate must be professionally relevant for this purpose. However, this is rarely a problem. After all, statistics which say that you will earn a lot more with a doctorate, are usually sufficient to prove this. It will only be difficult if you are older than 50. This would raise doubts about the tax office regarding the benefits of a doctorate for the rest of your professional career.

Attention! Not all costs are deductible right away!

Not all costs related to your doctorate can be paid in one year. For example, if you buy a computer, you have to deduct it for several years according to the official depreciation tables. However, this has the advantage that you can also include a device that you had previously purchased in the income tax declaration.