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Commuters not only have to deal with lost time, but also with high costs.

The mobility allowance, a financial scheme for people in Germany with a low income, offers relief. This scheme is particularly interesting for interns, students and other low-income earners, because their salaries are often below the tax-free threshold. More than 20 million Germans travel between their home and workplace every day. 

An analysis by the Federal Institute for Construction, Urban and Space Research shows that these commuting kilometres often cost a lot of money. Those who earn enough can use the so-called Commuter flat rate and claim these costs as a deduction on your tax return. But until recently, those who do not pay income tax could not claim anything. The mobility premium introduced in 2021 now offers a solution for this group.

who is eligible?

The mobility allowance is intended for people whose taxable income is below the tax-free threshold. This exemption, which guarantees the subsistence level, is re-established each year. In 2024, the threshold will be 11.784 euros for single people and 23.568 euros for married couples. Interns, students and people in the early stages of their careers in particular often fall into this group and can therefore benefit from the scheme.

To receive the mobility bonus, the distance between home and work must be at least 20 kilometers. The amount is calculated based on the same guidelines as the Commuter flat rate. This compensation applies from the 21st kilometer and is currently 30 cents per kilometer. For the years 2024 to 2026, the rate has been increased to 38 cents per kilometer from the 21st kilometer.

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The mobility premium is not granted automatically, but must be applied for via the tax return. The tax office then checks whether the conditions are met. It is important to state the distance and frequency of travel correctly. Incorrect or incomplete information may lead to sanctions or refunds.

The premium is paid directly by the tax office and is separate from other allowances or benefits. The exact amount paid depends on the travel expenses and the number of kilometres. According to estimates by the Federal Ministry of Finance, around 250.000 people can make use of this scheme.

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People with higher incomes who pay income tax use the regular Commuter flat rate. This provides for a tax reduction by deducting travel expenses from taxable income. The mobility premium, on the other hand, offers low incomes the opportunity for the first time to partially recover travel expenses. Commuters who travel longer distances, such as in rural areas, can particularly benefit from the scheme.

The mobility premium is temporary and will initially apply until the end of 2026. The increased rates for the Commuter flat rate are in force until this date. Whether the scheme will be extended after that depends on future decisions of the government. The debate on fair tax benefits plays an important role in this.

what do experts say?

Tax advisors emphasize the importance of a careful application. “It is crucial to fill in and keep all documents, such as employment contracts and travel details, accurately,” says an expert. He advises to submit the tax return on time, so that the payment of the mobility allowance is not unnecessarily delayed.

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There is also positive feedback from politicians about the scheme. The mobility bonus is seen as a targeted measure to combat social inequality, because it supports low-income groups that have not benefited up to now.

The mobility premium is a valuable support for low-income commuters with high travel costs. Trainees and students in particular can get part of their costs back thanks to this scheme. The simple application via the tax return makes the scheme accessible. The premium will continue to exist until 2026, which offers commuters the opportunity to structurally reduce their costs. It therefore pays to keep a good record of journeys and kilometres and to submit the application on time.

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