Include interest on a student loan in your tax return
There are many costs involved in studying. Some students are therefore dependent on a student loan. As soon as the loan is repaid, interest usually has to be paid as well. You can list these in your tax return and thereby reduce the tax burden.
Interest can be deducted for first and second degree
Who to financing If you took out a special student loan during your studies, you have to pay it back at some point. The first installments are often due as soon as the degree is finished and there is income from working in a job.
The installments for the student loan do not count towards tax-deductible expenses. However, the interest chargesthat have to be paid for the student loan must be listed in the tax return.
A distinction must be made between whether it is a first or a second degree. Became the credit used to finance a first degree without having previously completed vocational training or a degree, then the interest as a special expense can lower the tax burden. A maximum deductible amount per calendar year must be observed, which for example in 2014 is 6,000 euros.
In the case of a second degree, however, these can be stated as income-related expenses. In this case, all accrued interest is deductible.
List the interest on the student loan in your tax return
When financing a first degree, you can enter the interest on the loan on the main form of the tax return as soon as you have paid it. There you will find a field for "Expenses for vocational training" under the special expenses.
If the loan was used to finance a second degree, you can enter the interest for the respective year in Appendix N, under further training costs, which count as income-related expenses.
The KfW student loan gives you the opportunity to earn a living during ...
The expenses must be supported by supporting documents such as the credit agreement and bank statements, so these documents should be kept.
The prerequisite for the tax deductibility of the interest is, however, that you have actually paid taxes. Accordingly, you can only list expenses through interest if you have corresponding income that is at least above the applicable basic tax allowance. In 2014, for example, this basic tax-free amount was 8,354 euros. However, many former students have a corresponding income after their studies and thus with the start of the repayment period and can reduce their own tax burden by specifying the interest.