Werbungskosten (income-related expenses): Using your private phone and internet for work, special work clothes, job application costs, using a room at home as an Arbeitszimmer all fall under this umbrella, for which you’re automatically given a €1000 annual allowance. If you earned below this amount and paid taxes, then you definitely need to file a tax return for that refund.Įntfernungspauschale (commuter tax allowance): You can claim 30 cents in expenses per kilometre (one-way) for your commute to and from work – regardless of whether you drive, bike, walk or take the train. Grundfreibetrag (basic income allowance): This is the amount everyone is allowed to take home tax-free. Some of these deductions you should consider are: Therefore, when you file your tax returns, Finanzamt refunds you the amount of tax incurred on this amount. These are costs you incurred that should have NOT been taxed the same as your kawaida costs. These are basically where all the money rests (is that a direct translation from Swahili, oh well).
For those on mini-jobs or midi-jobs, no income tax is deducted so filing a tax return is futile. If you paid no taxes, then there’s no refund to worry about. Lohnsteuer:ĭid you pay any Lohnsteuer for that year? Essentially, your tax returns are based on the amount of tax you paid and if you paid more taxes than required, then you get a refund. Is it worth it?īefore we get into how you can file for tax returns, there are a few issues to consider, to decide whether to undertake this very boring and tiring assignment. The whole process for filing the tax returns can take up to 3 months from the day you hand in the completed forms until you get the refund in your account. For example, this year, 2018, you can file returns for 2017, 2016, 20. It’s recommended, you file annually.įor employees or students (only if you are paying Lohnsteuer), you can wait up to four years. Timelineįor business owners, you have to file your tax returns latest every 2 years. For business owners, using a tax consultant is not optional, if you aren’t well versed with the tax laws, a tax consultant will save you hours, money and possibly prison (if end up filing your taxes wrong). You can even deduct the costs of traveling to and from work, regardless of whether you drive a car, ride a bike or take public transportation.Well, the easiest way is to get a tax consultant ( Steuerberater) to do it, but sometimes, this can turn expensive or you don’t know any that you can trust. On top of this, you also have the opportunity to declare additional work-related expenses, donations to charities, and childcare costs that can lower your taxable income and increase your chances of receiving a tax refund.įor instance, you can deduct work-related moving costs, costs associated with finding jobs, continuing education or training, work clothing, work-related books, and other work-related expenses. Each item is numbered and matches the fields in ELSTER, so it’s just a case of filling in the blanks. The annual wage and tax statement issued by your employer ( Lohnsteuerbescheinigung) contains all the necessary information you’ll need to file a declaration, provided you have no extra income sources. You don’t have to submit this paperwork, but you do have to keep it for 10 years in case you get audited, or in case the tax office needs additional information from you. Freelancers will need details of all their earnings and expenses, backed up by the corresponding invoices and receipts. This should be sent to your home address each year by your employer. If you’re employed, you’ll also need your annual wage and tax statement ( Lohnsteuerbescheinigung). You can also outsource your declaration to a tax consultant (.more on that later). ELSTER is only available in German, but luckily there are a few online tax tools available in English, such as Taxfix or Steuergo.
ELSTER ONLINE ANLAGE N CODE
All you have to do is sign up on the website and you’ll be sent a code in the mail, which you use to finish setting up your account. As an employee, you can choose to submit a paper copy. This number is yours for life, so keep it safe!ĮLSTER: If you’re self-employed, tax declarations must be submitted electronically using the ELSTER tax portal online.
ELSTER ONLINE ANLAGE N REGISTRATION
Tax identification number ( Steuer-Identifikationsnummer ): You’ll automatically receive a tax ID number after you register your German address with the local registration office ( Bürgeramt). Note that if you move to a new district, you will automatically be issued with a new number when you register in the area. Tax number ( Steuernummer ): If you don’t already have one, submit your first German tax declaration and your district’s tax office ( Finanzamt) will issue you a tax number. What you’ll need to submit your tax declaration
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