Deduction of income-related expenses for cab fares for the commute to work

Cabs are considered public transportation, which is why the costs for a cab ride to the first place of work are not only deductible at the amount of the commuting allowance.

For commuting to work, the law normally only allows income-related expenses in the amount of the commuting allowance. An exception applies to public transport, where the actual costs are deductible. The Thuringia Tax Court has now determined that a cab is also to be regarded as a means of public transport within the meaning of this provision. Therefore, journeys made by cab from the home to the first place of work can be claimed as income-related expenses not only in the amount of the commuting allowance, but also in the amount of the actual expenses incurred. Even if cabs do not minimize road congestion to the same extent as scheduled services, there are environmental and transport policy reasons for tax privileges, according to the court. However, the tax office has lodged an appeal with the Federal Fiscal Court.