Many parents assume that tuition fees at a private school must be fully borne by themselves. However, the German tax system allows a portion of these costs to be reclaimed—provided certain criteria are met. If a child attends a school that meets the legal requirements, up to 30% of the qualifying tuition fees can be deducted to reduce the annual tax burden. It is advisable to check the applicable limits and ensure that all necessary documents are available so that the tax office can accept the deduction without problems.
Tuition Fees at Private Schools and Taxes – Check if a Refund Claim Exists!
The deduction of tuition fees in Germany is possible if the parent has a claim for child benefit or child allowance and is subject to unlimited tax liability in Germany. This means that the tax authorities not only consider the payment but also the parents’ tax status and whether the child actually fulfills the legal criteria. In practice, these are usually situations where parents pay the tuition fees from their own resources and the school confirms that the payments are made solely for educational purposes.
If the benefits apply only for part of the year, the tax office only considers the proportional part of the tuition fees, although the deduction limit remains annual. This is important because many families assume that a school change or an interruption in child benefit automatically prevents the deduction, which is not always the case. If the parent has signed a contract on behalf of a legally dependent child of legal age, the right to deduction also remains.
In practice, this means that it is worthwhile to first check one’s own tax status, the months of entitlement, and the availability of all payment-confirming documents. Only after this review can it be calculated which part of the tuition fees is deductible and whether the achieved limit is fully utilized.
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Which Schools Entitle to Deduction? A List That May Surprise
The right to deduction includes schools under private sponsorship, private schools that are not predominantly publicly funded, as well as so-called “other institutions” leading to a recognized school or professional qualification. Such schools must be located in Germany or another EU/EEA country, which is one of the more restrictive conditions. According to the regulations, schools in Switzerland and, since 2021, also schools in the United Kingdom (except German schools) are not deductible.
Parents are often surprised that the right to deduction does not include extracurricular activities and educational services outside the school system. Excluded are, for example, music schools, sports courses, language courses, holiday camps, or institutions operating outside the formal education system. Similarly, with studies – fees for universities are not qualified as tuition, and the tax authorities treat them entirely differently from expenses for school education.
To ensure that the school meets the conditions, it is advisable to request a current confirmation of status and a document that clearly proves that the education leads to a recognized school qualification or professional qualification. This is a small step that saves many problems during tax audits and allows the full entitlement to be utilized.
How Much Can Actually Be Deducted? Calculate Step by Step Before Filing the Tax Return
Parents can deduct 30% of the qualified portion of the tuition fees, but not more than 5,000 EUR annually per child. This means that to reach the maximum deduction, the total amount of qualified tuition fees must be at least 16,666 EUR in the respective tax year. Before calculating the deduction, the school should confirm which part of the fee relates to tuition and which part to accommodation, meals, or care, as these elements are excluded from deduction.
In the case of several children, the limits are not added together but calculated separately. Each child has its own limit of 5,000 EUR, regardless of the number of months tuition was paid. This is particularly important to note when children attend schools with similar costs, as the tax savings can be greater than parents initially assume.
If the tuition fees were paid only for part of the year, the tax office does not reduce the limit, which is an additional advantage for many families. In such a case, it is sufficient to properly document the payments and ensure that the school correctly divides the costs into qualified and non-qualified. Such prepared data allow for a quick calculation of the actual refund and avoid corrections by the tax office.
When Does the Tax Authority Accept the Deduction? Documents, Deadlines, and a Detail Parents Often Forget
For the tax office to accept the deduction, the tuition fees must be paid in the tax year in which they are to be deducted. This follows from the principle of cash basis accounting applicable in Germany, according to which the timing of the actual payment counts and not the period of education. Therefore, parents should pay attention to the transfer dates, especially if payments are made at the end of the year.
It is also necessary to submit documents confirming the amount of the qualified portion of the tuition fees. This means that the school should issue a certificate separating the educational costs from expenses for care, meals, or accommodation. Such a document is one of the most frequently requested proofs, and without it, the tax office may reject part or all of the requested deduction. Parents often forget that the attached documents must be legible, current, and match the information on the tax forms. This is especially true for families that change schools during the year or pay tuition irregularly. Well-prepared documentation is the fastest way to have the deduction accepted without additional questions from the tax office.
To ensure that all allowances and deductions—including those related to tuition fees—are correctly considered, it is worthwhile to use the German tax return application Taxando, which is specially developed for tax returns from Germany. With it, it can be quickly checked what exactly can be deducted, and no entitled benefit is overlooked. This is a simple way to make the most of the opportunities offered by the German tax system.
Maciej Szewczyk
He gained experience as a consultant on IT projects for many international companies. In 2017, he founded the startup taxando GmbH, where he developed the innovative tax app Taxando, which simplifies the filing of annual tax returns.
Maciej Szewczyk combines technological expertise with in-depth knowledge of tax regulations, making him an expert in his field. In his private life, he is a happy husband and father and lives with his family in Berlin.
