In 2013, the German Federal Ministry of Finance clarified the conditions for the commuter tax allowance that have applied since the 2012 tax return. In summary:

The tax office generally recognises only the shortest route to the workplace, at €0.30 per kilometre. A detour to collect passengers cannot normally be deducted unless it saves time or is necessary, for example because of major roadworks.

A passenger in a carpool can generally deduct no more than €4,500 per year. A person who drives their own car as part of a carpool can claim €0.30 per kilometre without this annual cap. An employee who is both a passenger and a driver may therefore be able to deduct the actual eligible total as work-related expenses.

This can be particularly relevant to people with long daily commutes. More than €4,500 may be deductible when a person takes both roles within a carpool, provided the distance-based calculation itself exceeds that amount.

Any contribution received from passengers must still be considered separately and may need to be declared as income. It is not part of the distance allowance and can be offset against fuel and vehicle-wear costs.

Sources:

• steuerlexikon online
• finanztipp