Important first: This page gives a general overview and is expressly not tax advice or legal advice. Whether and how much of your study costs you can deduct depends on your personal situation and is ultimately decided by the responsible tax office. Clarify your specific case with a tax adviser or directly with the tax office before you rely on any deductibility. Tax rules also change regularly.
Two categories decide, not the name
For the tax office in Germany, what matters is not whether something is called a distance degree, but which category your training falls into. If it is vocational training or a second degree, meaning it follows an already completed first qualification, the costs can usually be claimed as income-related expenses (Werbungskosten). Income-related expenses tend to reduce your tax more strongly and can be carried forward as a loss into later years, which helps precisely when you earn little or nothing during your studies.
If, on the other hand, it is a first qualification, the costs are often only deductible as special expenses (Sonderausgaben), and those only take effect in the same year you pay them. For working people who start a distance degree alongside their job, the first case usually applies. But the distinction is tricky in the detail and has even occupied the courts, so it is no sure thing.
Depending on the case, it is not only the tuition that is deductible, but often also specialist literature, work equipment, travel to on-site phases, a home study room under certain conditions, and examination fees. So collect receipts from day one. What is ultimately recognised is decided not by this page, but by your tax office on the basis of your figures.
Germany, Austria and Switzerland
The basic logic is similar, the terms and limits differ. In Germany it runs through income-related or special expenses, as described above. In Austria a similar principle applies: education, further training and retraining costs can be deducted as income-related expenses under certain conditions, provided there is a link to your current or a related occupation. Here too, the exact conditions and limits change and have to be checked case by case.
In Switzerland the situation is regulated differently. Costs for career-oriented education and training are deductible within the federal direct tax up to an annual maximum, provided you hold a first qualification at upper-secondary level or have reached the age of twenty and it is not a first qualification. The cantons have their own rules and their own maximum amounts, so it pays to look at the guidance for your canton.
Before you look at tax, it helps to look honestly at which costs a distance degree involves in the first place. Because you can only deduct what you actually pay and can document. Only the full cost breakdown shows which items matter for tax at all, and which receipts you should keep for them.
What you can do yourself
Collect receipts from the start. Tuition invoices, receipts for textbooks, travel to on-site phases, examination fees: file everything in an orderly way, ideally digitally and sorted by year. Anyone who only starts searching at year end no longer finds half of it. A simple folder or a photo archive on your phone is enough, the main thing is that you do it as you go, not retroactively.
Think about the loss carry-forward. If your costs in one year are higher than your income, an income-related deduction may only pay off in a later year when you earn more again. In Germany this often requires a tax return, even if you earned little in the study year. Whether that makes sense for you is one of the questions a tax adviser can answer quickly.
And get advice when money is involved. A tax adviser costs something, but often saves more than the fee, especially with the tricky line between a first and a second qualification. If you first want to understand which costs are coming your way at all and how a distance degree can be financed, an independent initial consultation sorts out the broad lines for you before you go into the detail.
Frequently asked questions
Can I really deduct my distance degree?
Often yes, but it depends on the individual case. If it is further training or a second degree after a completed first qualification, the costs in Germany are usually deductible as income-related expenses. For a first qualification, only special expenses tend to apply. What holds in your case is best clarified with a tax adviser or the tax office.
What is the difference between income-related and special expenses?
Income-related expenses tend to reduce your tax more strongly and can be carried forward as a loss into later years, which helps if you earn little in the study year. Special expenses only take effect in the year of payment. Which category applies depends on whether it is a first or a second qualification. The distinction is delicate in the detail.
Which costs are deductible?
Depending on the case, tuition, specialist literature, work equipment, travel to on-site phases, examination fees and, under certain conditions, a home study room often count. The condition is that you can document the expenses. So collect invoices and receipts from day one. What is ultimately recognised is decided by the responsible tax office.
How is it handled in Switzerland?
In Switzerland, costs for career-oriented education and training are deductible within the federal direct tax up to an annual maximum, provided certain conditions are met and it is not a first qualification. The cantons have their own rules and maximum amounts, so it pays to look at the guidance for your canton.
Does this page replace a tax adviser?
No. This page gives a general overview and is expressly not tax advice or legal advice. Whether and how much you can deduct depends on your situation and is decided by the tax office. Clarify your specific case with a tax adviser or directly with the tax office, especially because tax rules change regularly.
The information on this page is general in nature and is meant as orientation. It does not replace an official credit transfer or recognition decision by the relevant university and is not legal advice. The universities and the responsible bodies decide: the ZAB in Germany, the BMBWF in Austria and the SBFI in Switzerland. Always check your specific case directly with the university before you enrol.