How to deduct the €49 ticket from your tax bill

Deducting the Deutschlandticket from tax

For employees who pay for the 58-euro ticket out of their own pocket and want to deduct the costs, the following applies for tax purposes:

The cost of the Deutschlandticket is deductible – as is the cost of the Bahncard – if you use the ticket for business travel and it is cheaper than the regular tickets. So if the 58-euro ticket amortizes the regular travel costs to work, you can also use the ticket for private travel and still enter the costs as income-related expenses in your tax return.

However, this is not always advisable, as in many cases you can get more out of the commuter allowance. So our tip: work out which option is cheaper for you!

Deduct commuter allowance or ticket costs – which is cheaper?

A calculation example: You use the 58-euro ticket for a year and can therefore deduct 49 x 12 = 588 euros as travel costs for tax purposes. Your journey to work is 10 km and you travel this distance 200 times a year. If you use the commuter allowance of 30 cents per kilometer instead, the calculation is as follows:

10 km x 200 days x 0.30 cents = 600 euros

This means that even if you only travel 10 kilometers to work, you can deduct more than if you only declared the cost of the Germany ticket in your tax return.

Get the 58-euro ticket as a job ticket at a lower price

Your boss can either subsidize the 58-euro ticket or even cover the costs completely – tax-free in accordance with Section 3 No. 15 EstG as a job ticket. However, the costs of the Deutschlandticket job ticket must be covered or subsidized in addition to the wages owed anyway.
The good news: In addition to the tax exemption of the 58-euro ticket as a job ticket, you can also usethe 50-euro exemption limit for tax-free benefits in kind. And it gets even better: The issue price of the Deutschlandticket job ticket is 49 euros, but this is reduced by 5 percent if the employer grants a minimum subsidy of 25 percent on the issue price to the employee. For you, this means that the ticket will only cost a maximum of 34.30 euros.

49 euros – 30 percent (25 percent + 5 percent) = 34.30 euros

OUR TIP: To prevent a double benefit, the tax-free benefits are offset against the commuting allowance. So if you want to claim your travel costs in your tax return, the tax office will deduct the allowances. And if your employer pays you a higher allowance than the costs incurred, you would have to pay tax on this as income. Therefore, calculate exactly what you will ultimately have to pay for the Deutschlandticket and ask your employer to transfer only this amount in addition to your salary.

The Deutschlandticket job ticket is issued solely for the purpose of passing it on to employees of an employer (e.g. companies, authorities, associations). This means that you can only use the offer if your employer has concluded a Deutschlandticket-Jobticket framework agreement. You will then also need a company code from your company to book the ticket.

BY THE WAY: If you have received the 58-euro ticket as a job ticket, you can also use it for private journeys

The 58-euro ticket: save taxes with deferred compensation

One way to save tax with the Deutschlandticket is through deferred compensation. This means that you use the 58-euro ticket as a job ticket from your employer and have the costs deducted directly from your gross salary before deduction of taxes and social security contributions through deferred compensation. However, your employer must offer the ticket as deferred compensation and tax it at a flat rate of 25 percent – a small voluntary additional charge. In return, you forgo a gross salary of 49 euros, but save on social security contributions and income tax and have a job ticket.

Summary

The Deutschlandticket not only offers an inexpensive way to travel throughout Germany, but also tax advantages:

1. Income-related expenses: Deduct the cost of the ticket in your tax return.

2. Job ticket: Use the tax-free job ticket and benefit from additional discounts.

3. Deferred compensation: Save on taxes and social security contributions with deferred compensation.