You can deduct legal and court costs from your taxes in certain situations. Here's when it's possible and how to enter them in the Taxfix app.
đź“Ś Quick & Easy
- Legal costs related to employment disputes can be entered under “Job” in the app.
- University admission lawsuits may be deductible depending on your type of study (first or second degree).
- Divorce-related costs have not been tax-deductible since 2013.
- Legal costs from rental or other private disputes cannot be entered in the app.
- Cases threatening your livelihood are only recognized in rare exceptional cases by the tax office.
🚀 Your Guide
- General rules for legal and court costs
- Which job-related legal costs are deductible?
- What applies to university admission lawsuits?
- Are divorce-related legal costs deductible?
- Which costs are not supported in the app?
General rules for legal and court costs
Many people ask: Can legal or court costs be deducted from taxes at all? The answer is: Yes, in specific cases – but not all legal expenses are tax-deductible. It depends on whether the dispute is directly connected to your job or education. Only then can the costs be deducted under certain conditions.
For private matters like divorce or rental disputes, the rules are different: these expenses are generally not tax-deductible and cannot be entered in the Taxfix app.
Which job-related legal costs are deductible?
If you incur legal or court costs due to your job – such as a dismissal, unpaid wages, or workplace bullying – you can enter them in the Taxfix app under the “Job” category.
At the end of that section, select “Other Costs”, then choose “Legal Costs”. You’ll be prompted to enter the relevant amount and details about the case.
What applies to university admission lawsuits?
If you filed a lawsuit to secure your place at university, you may be able to deduct the legal costs:
- As special expenses if it was your first degree
- As work-related expenses if it was a second degree or a dual study program
To make the “Education & Studies” category visible in the app, go to “About You” and indicate that you studied. Then enter your legal expenses under “Education & Studies” → “Other Costs.”
💡 Good to know: You don’t have to decide whether the expense qualifies as a special or work-related one. Based on your answers, the Taxfix app automatically assigns the correct classification and includes it properly in your tax return.
Are divorce-related legal costs deductible?
No. Since January 1, 2013, legal costs related to divorce are no longer deductible. They are not classified as extraordinary expenses.
This includes:
- Legal and court fees
- Expert or appraisal costs
- Travel expenses for appointments with lawyers or courts
You will not be asked to enter this information in the Taxfix app.
Which costs are not supported in the app?
The app does not support entering the following costs:
- Rental disputes
- Civil lawsuits not related to your job or education
- Legal cases involving financial hardship or existential threats
These cases are highly individual and only considered in extreme situations – for example, when your livelihood is directly at risk. In such cases, the tax office reviews the situation on a case-by-case basis. A standard entry option in the app is therefore not available.
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