Expanding the scope of extended work hours is at hand.
Work commuting can warrant tax breaks, given that employees opt for the optimal transit method. The catch is determining which route qualifies for this label.
Employees are entitled to deduct 0.30 Euros per kilometer for the first 20 kilometers of their daily commuting, subsequently, 0.38 Euros per kilometer is allowed from the 21st kilometer onwards. But considering which route employees should list - the shorter or quicker one - can be puzzling.
In essence, typically, the shorter route is the solution. Nevertheless, certain conditions allow employees to opt for the longer route, according to the Taxpayers' Federation. For instance, if recurring traffic jams or a multitude of stoplights and railway crossings compromising time-efficiency characterize the shortest route, employees are permitted to choose the longer route and declare it on their tax return, provided the longer route consistently facilitates timely and swift arrival to work.
Employees should document their travel statistics
Taxpayers bear the responsibility of providing evidence of the aforementioned route details. They may, for instance, record their travel duration and chosen routes during usual commute hours.
It's crucial to note that the longer route must be faster consistently, not merely occasionally. In the words of Daniela Karbe-Geßler from the Taxpayers' Federation, "the fact that the longer detour route might also be more traffic-friendly and faster during peak hours of congestion, is not a valid argument in this context." The supporting documentation should encompass multiple days rather than just one.
Additionally, employees who do not possess a legally established primary workplace in their employment contract, under particular circumstances, are allowed to offset their actual travel-related expenses. This was established in a ruling by the Federal Fiscal Court (Case No.: VI R 4/21), where the Taxpayers' Federation offers further information.
"In jobs at various companies, advertising costs for the commute are not capped by the distance allowance, but the actual expenditures can be accounted for," shares Daniela Karbe-Geßler from the Taxpayers' Federation.
The car used by employees for commuting is an important factor in determining the eligible route. Employees must ensure that their chosen vehicle is fuel-efficient, as this can significantly impact their travel expenses.
Furthermore, maintaining accurate records of car-related expenses, such as fuel costs and vehicle maintenance, is essential when claiming tax deductions related to work commuting.
