Studying While Working: How to Legally Optimize Taxes and Education Costs

Combining professional life with expanding academic or practical qualifications represents in 2026 one of the most effective ways to kickstart a career or elevate an enterprise to a completely new level. We live in an era where demands on specialized knowledge – especially in fields such as taxes, accounting, and corporate finance – change at an unprecedented rate. Formal education closely linked with practical experience creates an enormous competitive advantage in the labor market, which can be directly converted into higher financial compensation.

However, investing in education brings not only a significant time commitment but also substantial financial costs. To maximize the return on this investment, we must navigate current Czech tax legislation. The tax system in the Czech Republic offers several legal avenues to significantly optimize the total cost of studies, but it also contains numerous pitfalls, legislative changes, and myths that can cost us tens of thousands of Korunas annually.

Before we dive into the specific sections of the law, we must precisely define four fundamental tax concepts to establish academic authority (E-E-A-T), as they are very often confused in practice:

• Tax Credit: This tool directly reduces the calculated income tax liability. If our tax liability is, for example, CZK 35,000 and we apply a tax credit of CZK 30,840, we only pay the difference to the state, i.e., CZK 4,160.
• Non-taxable Part of the Tax Base: This deduction (e.g., gifts, pension contributions, or life insurance) reduces the tax base itself, not the final tax directly. The real tax saving represents 15% (or 23% for higher income brackets) of the deducted amount.
• Tax-Deductible Expense: This is an expense that a self-employed person (OSVČ) or a company uses to reduce their tax base (under Section 24 of the Income Tax Act). We must be able to defend this expense as one incurred to generate, secure, and maintain taxable income.
• Tax-Exempt Non-Monetary Benefit: This is a benefit that an employee receives from their employer in the form of services or goods (not cash). This income is not taxed for the employee, is not subject to social security or health insurance contributions, and in defined cases (such as professional development) does not count towards the annual limit for standard benefits.

In this comprehensive manual, we will look in detail at how studying while working works from a tax perspective in 2026. We will show how employees and the self-employed can legally save money and analyze the current rules we must strictly respect.

Student Tax Credit in 2026: What Applies and What No Longer Does

When searching for information on how to save on taxes during studies, we very often come across search queries for the student tax credit. However, it is necessary to clarify this right at the beginning and debunk one of today's most widespread tax myths.

Important Notice: The classic student tax credit was permanently abolished in the Czech Republic. This change was implemented as part of the government consolidation package (Act No. 349/2023 Coll.) with effect from January 1, 2024.

In 2026, we can no longer apply any specific student tax credits (which previously amounted to CZK 4,020 annually under Section 35g of the Income Tax Act) in our tax return or during the annual tax reconciliation with our employer. Legislators justified this abolition by stating that working students are naturally entitled to the basic taxpayer relief, which is in the vast majority of cases sufficient to eliminate any tax liability for standard student side jobs. It often happened that this credit remained unused because other tax reliefs had already reduced the tax base to zero.

Although this specific relief was abolished, it does not mean that the state completely ignores students and studying professionals. We must, however, focus on other, still valid tax optimization tools and legislatively clean procedures.

What Tax Credits Remain for Students

Even though the specific tax relief for students is a thing of the past, the Czech tax system still offers mechanisms that help reduce the tax burden on families and studying individuals. Let's clarify these options so we do not confuse them and apply them correctly via the Moje daně portal or our payroll office.

Basic Taxpayer Relief

This credit can be claimed by every taxpayer in the Czech Republic, regardless of whether they study, work, or combine both. In 2026, the basic taxpayer relief remains at CZK 30,840 annually (which corresponds to CZK 2,570 monthly).

If we work under an agreement on completed work (DPP), an agreement on working activity (DPČ), or a standard employment contract, we can sign the Taxpayer Declaration (the 'pink form') with our employer. The employer will then apply this credit every month directly in our payroll. If we earn income from multiple sources simultaneously or operate as a self-employed person (OSVČ), we claim the full amount of CZK 30,840 at once in our annual tax return. This credit directly reduces the calculated income tax up to zero (it cannot, however, result in a tax bonus).

Dependent Child Tax Credit

If we are systematically preparing for a future career (studying) and are under 26 years old, our parents can claim the dependent child tax credit if legal conditions are met. Student status (more precisely, the status of a dependent child under the State Social Support Act) is absolutely crucial here.

The main conditions for parents to claim this credit include:

• Age up to 26 years: The entitlement expires on the day the child turns 26. The only exception is full-time doctoral studies, where student status can be maintained longer for certain purposes, but the strict limit of 26 years applies for the parents' tax credit.
• Systematic preparation for a future career: This includes studies at secondary schools and universities in the Czech Republic. The form of study (full-time or part-time/combined studies) does not matter, unless it is study during active military or security service, or if we are registered with the labor office receiving unemployment benefits during part-time studies.
• Shared household: The student must live in a shared household with the parent claiming the credit (temporary living in dorms or rentals due to study is not considered a breach of this condition).

Unlike standard tax credits, the dependent child tax credit can result in a tax bonus. If the credit is higher than the calculated tax liability of the parent, the state pays the difference directly to their account. Therefore, it is extremely important to actively monitor these tax credits during studies and provide proof of study to the parents' payroll department in time.

When the Employer Pays the Tuition Fees

If we decide to study while working, an extremely attractive opportunity opens up for financing education, especially at private universities. Cooperation with the employer can turn into a perfect win-win scenario.

The key to this solution lies in Section 6, Paragraph 9, Letter a) of the Income Tax Act (ZDP). If our employer pays our tuition or other professional development costs that are closely related to the employer's business activities, a highly advantageous tax regime applies to both parties:

1. For the employee (tax-exempt non-monetary benefit): The value of this education is completely exempt from personal income tax and from social security and health insurance contributions. If the employer instead increased our gross wage by the same amount, we would lose almost half of that value to taxes and social contributions on both sides.
2. For the employer (tax-deductible expense): Expenditures on professional development and employee education are fully tax-deductible for the company under Section 24, Paragraph 2, Letter j), Point 3 of the ZDP.

Extremely Important Detail: Although the government consolidation package introduced a comprehensive annual limit for the exemption of non-monetary benefits (such as sports, culture, or recreation) at the level of half of the average wage, employee education expenses related to the employer's business are explicitly excluded from this limit. They can therefore be provided and utilized without any upper limit, provided their connection to the work performed is reliably defended.

When It Makes Sense

This model is ideal for specialized professions where continuous qualification improvement and monitoring of legislative changes is a necessity. Typical examples include positions such as:

• Accountants, chief accountants, and financial methodologists
• Tax specialists, consultants, and future tax advisors
• Financial analysts, managers, and controllers

If we work in these fields, obtaining an academic degree or deeper specialization directly increases our value to the company. The employer gains a loyal expert with the most up-to-date knowledge, and we receive top-tier education without having to pay for it from our net wage.

You can read about how closely studies can be linked to real practice in this inspiring article: Daně, účetnictví a praxe: Proč studovat Vysokou školu Sting: Newton Today.

What to Prepare for the Employer

If we want the company to contribute to or fully cover our studies, we must approach negotiations professionally and present a clear argument plan:

• Benefit to the company: Which specific subjects and knowledge from our studies we will immediately apply in our daily work (e.g., optimization of corporate processes, implementation of new tax regulations).
• Financial savings: If we learn to handle complex tax and accounting operations internally, the company will save tens of thousands of Korunas on expensive external advisors and auditors.
• Qualification Agreement: To dispel the employer's fears that we will leave after completing our studies, we can actively propose signing a qualification agreement under Section 234 of the Labor Code. In it, we commit to stay with the employer for an agreed period (up to 5 years) or return a proportional part of the costs if we leave earlier. This gives the company legal certainty that the investment in our mind will reliably pay off.

Self-Employed and Tuition: Can Private University Fees Be Put Into Expenses?

Self-employed individuals (OSVČ) very often address whether they can claim private university tuition fees directly in their tax-deductible expenses. Here, we must proceed with maximum caution and strictly respect the interpretive practice of the Financial Administration of the Czech Republic.

The cornerstone for assessment is Section 24, Paragraph 1 of the ZDP, according to which tax-deductible educational expenses are only those that demonstrably serve to “achieve, secure, and maintain taxable income”.

Here, we encounter a crucial distinction that tax offices uncompromisingly verify during audits:

• Increasing qualification vs. Deepening qualification: Tax offices strictly diStinguish between a situation where an entrepreneur completes basic education (obtaining a completely new qualification, e.g., a bachelor's or master's degree in a field where they have not operated so far) and a situation where they only deepen or maintain an exiSting qualification. Obtaining an academic degree is often perceived as increasing qualification (personal development), which is excluded from tax expenses under Section 25, Paragraph 1, Letter u) of the ZDP as an expense for the personal needs of the taxpayer.
• Directly demonstrable link: If a self-employed person studies a field that does not directly relate to their registered business activity, they will not be able to defend tax deductibility at all.

However, if we have been successfully operating in accounting or economic consulting for a long time and demonstrably expand and deepen our competencies by studying a highly specialized program (e.g., focusing on tax processes or international taxation), the chance of defending the expense before the tax administrator increases. Nevertheless, this remains a gray area where we, as taxpayers, bear the burden of proof.

An intereSting comparison and view on how investment in studies can be conceptualized is offered in the text: Soukromá vysoká škola, která za studium zaplatí vám: Sting.

What May Be Safer for Self-Employed Persons

If we want to avoid potential arguments and lengthy disputes with the tax office regarding the deductibility of the entire university study, we can conceptualize our self-employed educational expenses through safer and legislatively clean alternatives:

• One-time professional seminars, courses, and practical workshops with a direct relation to our field of business.
• Professional certifications (e.g., certification of the accounting profession in the Czech Republic, courses organized by the Chamber of Tax Advisors).
• Purchase of professional literature, access to paid legislative and tax databases, and specialized software.

In any case, we strongly recommend consulting any intention to include tuition in tax expenses in detail with a certified tax advisor, who will assess specific risks based on our business history and current case law.

How to Calculate the Return on Investment in a Private University

InveSting in education at a private university should be evaluated as rationally as any other financial investment. Our goal is to achieve the highest possible return on the invested funds. We can define a simple mathematical model for a clear view.

First, we must calculate our actual net investment:

Net Investment=Total Tuition−(Scholarships+Employer Contribution+Tax Savings)

Once we know the net investment, we can easily calculate the payback period or ROI (Return on Investment) expressed in years:

ROI (Payback Period in Years) = Net Investment ÷ Expected Annual Increase in Net Income 

Practical Example for Illustration:

Let's imagine that the annual tuition fee is CZK 50,000. A three-year bachelor's degree will therefore cost us a total of CZK 150,000.

• Based on a qualification agreement, our employer contributes 50% of this amount (CZK 75,000), which is also exempt from taxes and contributions for us.
• Our actual net investment is therefore CZK 75,000.
• Based on data from the Information System on Average Earnings (ISPV) for 2025/2026, we know that specialists in finance and taxes with a university degree achieve significantly above-average wages, and their salary growth after obtaining a degree and experience is on average at least CZK 5,000 net monthly (i.e., CZK 60,000 net annually) compared to colleagues without a degree.

The investment in studies will return to us in this very realistic scenario in less than 15 months from graduation. Every subsequent year after this period already generates a net financial profit and a permanent appreciation of our personal value in the labor market. Although specific earnings can never be 100% guaranteed, historical data clearly confirms that qualified financial experts carry almost zero financial risk.

Why Studying Taxes, Accounting, and Finance Pays Off Faster Than a General Degree

There is an abundance of study fields on the market, but not all of them share the same economic dynamics. graduates of general humanities or management fields often struggle to find employment corresponding to their qualification after school, specialists in taxes and accounting are in high demand under any economic situation.

During times of economic growth, companies expand massively and need sophisticated financial planning and tax optimization. In times of recession, on the contrary, they optimize costs under pressure and look for every legal way to save – which cannot be done without top-tier internal experts.

The Sting Academy has long profiled itself as an elite private academic institution that places extreme emphasis on linking academic theory with everyday practice. It offers flexible teaching options that are designed directly for busy professionals combining their career with school.

If we are considering studying, we can choose:

• Flexible Sting part-time/combined studies, which allow us to work full-time and study mostly on weekends.
• Intensive Sting bachelor studies for a fast and secure start to a successful career.

A unique advantage is the narrowly focused specializations that respond to the real demand of employers and the market:

• Sting Taxation specialization – designed for future tax advisors, auditors, and tax specialists who want to master the tax system to the smallest detail.
• Sting Accounting specialization – an ideal choice for those who want to manage corporate finances, transform accounting data into strategic managerial decisions, and master modern digitalized accounting.

Checklist Before Submitting an Application

Before we make a final decision and submit our application, we should go through this brief checklist to ensure we have not underestimated anything:

• Age and status: Am I under 26 so that my parents can continue to claim the dependent child tax credit?
• [ ] Employment status: Will I study while working as an employee, or as a self-employed person?
• Negotiating with the employer: Have I presented the benefits of my studies to my manager? Is there a chance of full or partial tuition coverage as a non-monetary benefit?
• Qualification agreement: Am I willing to sign a stabilization commitment in exchange for the employer financing my studies?
• Form of study: Have I chosen the right format of teaching (e.g., combined form) to handle work duties and exam preparation?
• Consulting with a tax advisor: If I am self-employed, have I verified the possibilities of including tuition in tax expenses for my specific trade with an expert?

Conclusion: The Greatest Saving Is Not a Tax Credit, but a Well-Chosen Career Investment

Even though legislative changes in recent years have stripped us of some direct tax relief, such as the classic student tax credit, we still have powerful and legal tools at our disposal to optimize the cost of education. The key to success is active communication with the employer, proper use of non-monetary benefits, and precise knowledge of tax laws.

We must, however, realize the most important thing: the greatest financial saving and profit never come from state tax reliefs. True wealth and career security stem from knowledge that no one can take away from us, and from a prestigious degree that opens the door to the best-paid positions on the market. Choosing the right university with a focus on real practice is the best strategic step we can take for our future.

Chcete se naučit daně řešit v praxi, ne jen číst paragrafy? Podívejte se na studium na Stingu a podejte si nezávaznou přihlášku přes Online přihláška Sting.

Frequently Asked Questions (FAQ)

1. Does the student tax credit exist in 2026?

No, this specific tax credit was permanently abolished with effect from January 1, 2024, by the government consolidation package. It can no longer be claimed in tax returns in 2026.

2. What student tax credits can be claimed during studies?

While studying, we can claim the basic taxpayer relief of CZK 30,840 annually. If we meet the status of a dependent child under 26, our parents can claim the dependent child tax credit.

3. Can an employee deduct tuition fees at a private university?

No, an employee cannot deduct paid tuition from their tax base or claim a tax credit on it themselves. However, they can agree with their employer to cover the tuition as a tax-exempt non-monetary benefit.

4. Can an employer pay for an employee's studies?

Yes, and it is highly tax-efficient. Under Section 6, Paragraph 9, Letter a) of the ZDP, this is a tax-exempt non-monetary benefit for the employee (no tax or social contributions are paid on it), and for the employer, it is a fully tax-deductible expense (Section 24, Paragraph 2, Letter j, Point 3 of the ZDP) which also does not fall under the limit for leisure benefits.

5. Can a self-employed person put tuition into expenses?

Only under very specific and strict conditions. The study must directly relate to the business activity and serve solely to deepen or maintain an exiSting qualification (not to acquire a completely new qualification). Given the strictness of tax offices, we always recommend an individual consultation with a tax advisor.

6. How to calculate the return on investment in a private university?

We calculate the return by dividing our net investment (total tuition after deducting scholarships, employer contributions, or tax savings) by the expected annual increase in net income obtained thanks to the acquired education and higher qualification.

7. Is it worth studying at a university while working?

Decidedly yes. Especially in specialized and dynamic fields such as finance, accounting, and taxes, the investment in education pays off very quickly, as we can immediately apply this latest knowledge in practice and thus increase our value in the labor market.

References:

• ČESKO. Zákon č. 586/1992 Sb., o daních z příjmů, ve znění pozdějších předpisů. Dostupné také z portálu Finanční správy ČR a systému Zákony pro lidi. 
• ČESKO. Zákon č. 262/2006 Sb., zákoník práce, ve znění pozdějších předpisů.
• ČESKO. Zákon č. 349/2023 Sb., kterým se mění některé zákony v souvislosti s konsolidací veřejných rozpočtů (Konsolidační balíček).
• FINANČNÍ SPRÁVA ČR. Pokyny řady D k jednotnému uplatňování některých ustanovení zákona o daních z příjmů [online]. Finanční správa ČR, 2025 [cit. 2026-07-14]. Dostupné z portálu Moje daně.
• INFORMAČNÍ SYSTÉM O PRŮMĚRNÉM VÝDĚLKU (ISPV). Mzdová a platová sféra v ČR za rok 2025 [online]. Ministerstvo práce a sociálních vecí ČR, 2026 [cit. 2026-07-14].
• PORTÁL MOJE DANĚ. Daňová přiznání k dani z příjmů fyzických osob: Elektronické formuláře a metodické pokyny [online]. Generální finanční ředitelství, 2026 [cit. 2026-07-14]. 
• NEWTON TODAY. Daně, účetnictví a praxe: Proč studovat Vysokou školu Sting [online]. [cit. 2026-07-14]. Dostupné z: https://newton.today/ 
• VYSOKÁ ŠKOLA Sting. Soukromá vysoká škola, která za studium zaplatí vám [online]. [cit. 2026-07-14]. Dostupné z: https://www.Sting.cz/

Author: NEWTON Today