How to file expenses for the production of income

File expenses for the production of income only if they exceed €750 per year. Itemise the costs and specify how they relate to the taxation.

If you have wage income, you will automatically receive a €750 deduction for the production of income. However, the deduction cannot be higher than your amount of wage income.

Report the deduction on your tax return

Report your expenses for the production of income for 2018 after you have received your pre-completed tax return. You receive your pre-completed tax return by the end of April.

Report deductions in MyTax

Alternatively, you can file the information on a paper tax return form.

Be sure to keep the receipts. The Tax Administration will ask for them, if necessary.

Examples of how the €750 personal liability is taken into account in the tax calculation

Example 1: Your wage income amounts to €10,000. On your tax return, you report the following expenses for the production of income:

  • membership fees €150
  • commuting expenses (daily travel between home and work) using public transport €1,000
  • costs for the acquisition of professional literature €300.

The following deductions will be made from your wage income: membership fees of €150, travel expenses of €250 (own liability €750) and the €750 deduction for the production of income.

The membership fees and commuting expenses are always deducted, despite the deduction for the production of income. The expenses for professional literature are not deducted, as they are lower than the deduction for the production of income.

Example 2: Your wage income amounts to €10,000. On your tax return, you report the following expenses for the production of income:

  • membership fees €150
  • commuting expenses (daily travel between home and work) using public transport €1,000
  • costs for the acquisition of professional literature €500
  • workspace deduction €410

The following deductions will be made from your wage income: membership fees €150, travel expenses €250 (own liability €750) and other expenses for the production of income at a total of €910.

The membership fees and commuting expenses are always deducted, despite the deduction for the production of income. The total amount of the workspace deduction and the expenses for professional literature exceeds the deduction for the production of income (€750), and therefore the sum of €910 will be deducted from the wage income, not €750.