BAföG repayment: tax deductible?

Can a BAföG repayment be tax deductible?

• The support in the form of BAföG is not intended to provide complete support for living expenses. Because after you have finished your studies you have to pay it back. The state assumes that you can then take up a job and reimburse the amounts.
• As a taxpayer, you may now come up with the idea that this repayment of BAföG is tax-deductible in your tax return as income-related expenses. Unfortunately this is not the case. According to a ruling by the Federal Court of Justice on February 7th, 2008, BAföG repayments are not tax deductible. Not even as special editions.

Interest on the repayment of other loans is tax deductible

• However, if you took out any loan from a bank to finance your studies during your studies, then the situation is different again. You will also have to make repayments for this loan. However, it is an interest-bearing loan. The respective
  instagram viewer
  interest charges you can claim against this for tax purposes.
• Since tax law in Germany is very complicated, the tax law is deductible costs not so easy to smell for a loan. Your tax advisor can certainly provide you with precise information.
• With BAföG, the repayments usually do not contain any rule. Therefore there is no tax credit here. In addition, you do not incur any real costs simply by repaying the amounts. All you have to do is pay back what you have already received.


BAföG repayment in one fell swoop - advantages and disadvantages

BAföG is a state loan and must be returned to the ...

• If you still want to save on BAföG repayment, the best thing to do is to pay it back in one fell swoop. Then you will receive a nice discount of around 30 percent of the total amount paid out to you.
• You can also finance your repayment in one fell swoop with the help of an installment loan. For this you pay interest, which is usually not as much as the 30 percent saving on the entire BAföG amount.