You’re a student or in training and receive BAföG? Here’s what you need to know about its relevance for your tax return.
📌 Quick & Easy
- BAföG is tax-free and doesn’t need to be included in your tax return.
- It’s considered an educational grant – not income.
- Repayments without interest can’t be deducted.
- Interest from late repayment or from advancement BAföG can be claimed.
🚀 Your Guide
- What is BAföG?
- Do I have to report BAföG in my tax return?
- Can I deduct BAföG repayments?
- What about advancement BAföG?
What is BAföG?
BAföG is a government grant for students and trainees. It helps fund your education – regardless of your or your parents’ income.
You receive:
- Pupils: BAföG as a full grant – no repayment required.
- Students: Half as a grant, half as an interest-free loan – repayment after graduation.
The amount depends on your income, your parents’ or partner’s income, and your assets.
Do I have to report BAföG in my tax return?
No. BAföG is tax-free. It’s an educational grant, not employment income or taxable earnings. That’s why you don’t need to include it in your tax return.
💡 If you receive BAföG, you can still use the app – your grant doesn’t affect that.
Can I deduct BAföG repayments?
The repayment itself can’t be deducted – because it’s interest-free. But if you pay interest due to delays, you can declare those interest payments in your tax return.
💡 Learn more: How to deduct education loan in your tax return
What about advancement BAföG?
Advancement BAföG (formerly known as Meister-BAföG) supports further education such as becoming a master craftsman, educator, or business administrator. In addition to the grant, you may receive a low-interest loan. You can deduct the interest from this loan as job-related expenses in the year you pay them.
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