The short answer on the loss carryforward
A loss arises when your deductible expenses for studies or work are higher than your income. You enter the loss in your tax return, where it is offset against other income. Any amount that remains is subject to the loss carryforward and moves into later years. The return for 2026 must generally reach the tax office by 31 July 2027.
The most important facts at a glance
| Point | Value | Status | Source |
|---|---|---|---|
| Filing deadline without a tax adviser | 7 months after the end of the calendar year, so 31 July 2027 for 2026 | 20 October 2026 | § 149 para. 2 AO |
| Filing deadline with a tax adviser | Generally the end of February of the second following year | 20 October 2026 | § 149 para. 3 AO |
| Special expenses for initial training | Up to €6,000 per calendar year | 20 October 2026 | § 10 para. 1 no. 7 EStG |
| Flat-rate deduction for work-related expenses | €1,230 per year (2026) | 20 October 2026 | § 9a EStG |
| Loss carryback | Up to €1 million into the previous year, the remainder into later years | 20 October 2026 | § 10d EStG |
When does a loss arise during studies?
A loss arises when the deductible expenses are greater than the income. For students, this happens mainly when a course of study is linked to your occupation, for example a second degree after vocational training, and you have little income of your own at the same time. The tax office decides case by case whether costs are treated as work-related expenses or as special expenses.
For initial training, special expenses of up to €6,000 per year are available. They reduce your tax, but they do not automatically create a loss. The article Second degree: costs, BAföG, child benefit and taxes (in German) shows how the distinction works for a second degree.
Worked example: from the loss to the loss carryforward
The numbers are invented and serve only the calculation.
- Income 2026 from wages: €3,000.
- Work-related expenses: flat-rate deduction €1,230 plus tuition fees €2,400 plus specialist literature and travel costs €3,600, together €7,230.
- Result for 2026: €3,000 minus €7,230 equals minus €4,230. That is the loss.
- Offsetting in the same year and the previous year: the loss first reduces other positive income of the same year. If an amount remains, it can be offset against the previous year, provided there was positive income there. In this example there was no income in 2025, so the full amount remains.
- Carryforward into 2027: if you have positive income of €2,000 there, the tax office offsets €2,000 against the loss. €4,230 minus €2,000 equals €2,230 remaining for the following years.
The limit to 70 percent only applies above one million euros and therefore does not affect students.
How do I prepare the tax return?
- Collect the wage tax certificates, study receipts, travel costs and literature for the year.
- Enter income and work-related expenses in Annex N. Justify, in a short explanation, why the expenses are work-related.
- Submit the return by 31 July of the following year if you work without a tax adviser. With a tax adviser, a later deadline applies.
- Keep the notice. The tax office determines the loss there and states the amount of the carryforward.
- In the following year, check whether the carryforward was taken into account in the return.
Who needs to file a return at all?
If your employer taxes your income at a flat rate, the return often brings no refund. Whether you are obliged to file depends on your other income. The article Side job and tax (in German) explains the forms of employment. The basic allowance of €12,348 (2026) determines from which taxable income tax is payable at all. The article Tax benefits during studies (in German) summarises the tax advantages of studying.
Frequently asked questions
Do I have to file a tax return if I only have a minijob?
Usually not, if your employer taxes the income at a flat rate. An obligation can arise from other income or from a request by the tax office. If in doubt, check your notices.
Does the loss carryforward also apply to a first degree?
The law speaks in general terms of expenses for your own vocational training and sets special expenses of up to €6,000 for it. Losses arise more often from expenses that are work-related. Whether a course counts as a first or a second training is decided by the tax office in each case.
What is the deadline if a tax adviser helps me?
Returns prepared by a tax adviser have a later deadline. It generally ends at the end of February of the second following year. The exact deadline applies to your case and should be agreed with your adviser.
What counts as work-related expenses during studies?
Work-related expenses are costs connected with your occupation or with a course of study that is work-related, such as specialist literature, travel costs or tuition fees. They must be documented. The tax office decides whether they are recognised.
Sources and review
- § 149 Fiscal Code (Abgabenordnung), gesetze-im-internet.de, accessed 20 October 2026.
- § 10 para. 1 no. 7 EStG, gesetze-im-internet.de, accessed 20 October 2026.
- § 10d EStG, gesetze-im-internet.de, accessed 20 October 2026.
- § 9a EStG and § 32a EStG, values for 2026 according to the Academycon fact base of 20 October 2026. Check against the original wording before publication.
Information, not individual advice.
Editorial team: Academycon · Last updated: October 2026
Information, not individual advice and not tax advice. For your situation, you can use the Academycon online check.
Related reading
- Side job and tax: minijob, student job and more (in German)
- Second degree: costs, BAföG, child benefit and taxes (in German)
- Tax benefits during studies (in German)
- Tax return for students: getting money back (in German)
Last updated: October 2026. This guide is general information, not individual advice or tax advice. The German version is authoritative.
