Promoting is an investment. During your research you have to do it with a relatively low salary, while you make quite a lot of costs. In order to complete your promotion, you will have to spend a lot of money. Consider, for example, the printing costs of your dissertation and the reception after the promotional ceremony. Luckily, study costs are still tax deductible in 2019 and 2020. In this article you will find the necessary information to take into account.
Important!
The expenses are only deductible in the year in which the costs were paid or settled. So not the invoice date of a received account is the criterion here, but the year in which you paid the costs!
Threshold expenditure for study year 2018
It concerns the expenses by you or by your tax partner for the study. In addition:
– The training or study was focused on your profession or work, or on future profession or work;
– The expenses (minus any allowances) were higher than the threshold of € 250. Only the expenses above the threshold can be deducted. Usually a maximum deduction amount of € 15,000 applies.
If you had a tax partner throughout 2018
You aggregate the deductible expenses for study costs and other educational expenses. If your tax partner also had study costs, your tax partner also has a threshold of € 250 and the maximum amount of € 15,000. This also applies if you paid the study costs for your tax partner. You can divide the deductible amount as you wish, as long as the total is only 100 percent.
If you did not have a tax partner throughout 2018
If you did not have a tax partner, you deduct your own expenses. This also applies if you had a tax partner for part of 2018 and did not opt to be regarded as each other’s tax partner for the whole of 2018.
Deductible expenses
The deductible costs include:
– The costs of preparing and having the thesis printed;
–ISBN registration costs;
–Literature;
– Packaging material and shipping costs of the theses;
– Costs for the promotion committee;
–All costs directly related to the academic ceremony such as travel expenses, rent occasion clothing (for PhD student, but also for paranymphs, deductible above € 250!);
Regarding the printing costs of the dissertation, there is now jurisprudence that only the number of books is deductible that is at least required by the university. With a larger edition, at least the amount involved in printing this minimum required edition is deductible.
In itself, this does not have to have any major consequences for the deductible amount because the majority of the printing costs are involved in the printing of these first copies of the edition. The printing of extra books is relatively inexpensive, namely about € 1.50 – € 3.00 per copy.
Deduction of the promotion costs is no longer possible if there is no longer the intention to stop working, which can occur for example in case of retirement.
Non-deductible (study) costs include:
– The costs of a study room;
–The costs of a promotional dinner (see Tip);
–The cost of a party (see also Tip);
–The costs of a photo report;
–Fees received;
–Cost of travel and lodging;
–Interest on study debts.
If you receive a reimbursement from your employer or a contribution to the costs of the dissertation, you must deduct this received compensation from the deductible item. The employer may pay this allowance untaxed. See also Tip 3.
Tip 1
Save as much as possible all bills, receipts and other supporting documents.
Tip 2
Check whether it is advantageous to pay costs in the current year or in the following year. Keep in mind the ‘threshold’ for study costs in both years.
Tip 3
The costs of the dinner and / or party that a PhD student offers to supervisor and colleagues after the ceremony are not extraordinary expenses, but may be deducted as representation costs. Representation costs are not deductible, but can be reimbursed tax-free by the employer!
Tip 4
It can sometimes be very lucrative, and you save a lot on costs, to invest extra time in looking for one or more sponsors. See for example the www.fondsenboek.nl
Tip 5
Because the costs of a party for the tax are not deductible, plus that any fees received have to be deducted from the costs of the PhD, there are PhD students who can separate these two funding streams completely. Some knowledge of tax deductions, or assistance from a tax adviser is necessary here if you do not want to get into trouble later on.
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