Dual household management and family residence - income-related expenses and commuter allowance regulations

The Federal Fiscal Court (BFG) had to address the tax recognition of maintaining two households and the deductibility of costs for trips home to visit family in its decision of 13 May 2025 (File Reference RV/7104120/2024). The central issue was the conditions under which a "family residence" or "own household" exists. As a general rule, under Section 20 (1) no. 1 of the Income Tax Act (EStG), amounts spent on the taxpayer's household and for the maintenance of their family members cannot be deducted from individual income. However, if the taxpayer has two residences due to professional reasons and it is unreasonable to relocate the family residence to the place of employment, the additional expenses associated with maintaining two households can be deducted as income-related expenses.

In the present case, the taxpayer was employed in Vienna and rented a flat there from an acquaintance, contributing to the costs. His family lived in Slovakia in his parents-in-law's house, where he shared two rooms with his wife and child and contributed to the household expenses. Returning to Slovakia daily was unreasonable due to the distance. The BFG initially confirmed that the costs for the flat at the place of employment in Vienna are to be recognised as income-related expenses. The decisive factor is that the dual household management is professionally necessary, as relocating one's residence appears unreasonable. This was particularly the case here due to the family situation, as it would have been unreasonable for the family to move into a two-room flat in Vienna, which the taxpayer merely shared. It should be emphasised that the court does not set high requirements for accommodation at the place of work – even a rented room can be sufficient. Of central importance is the clarification that the absence of a classic "own household" at the family residence in Slovakia does not necessarily preclude the recognition of dual household management costs.

However, the BFG examined the deductibility of family home visits and the claim for the commuter lump sum. The definition of "own household" according to § 4 of the Commuter Ordinance is decisive here. This requires a separate dwelling that meets the needs of daily living. Since, in the specific case, the kitchen and sanitary facilities at the family residence in Slovakia were merely shared, the BFG denied the existence of an own household within the meaning of the Commuter Ordinance. Therefore, neither the costs for the family home visits nor the commuter lump sum could be taken into account for tax purposes.

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