![]() ![]() (READ: How to have your Remittances Exempt from Taxes) This includes money sent to your parents in Kenya. Unterhalt(support for dependents): The amount spent supporting a spouse, children or aging parents. Submit copies of contracts, monthly bank transfers, etc. Kinderbetreuung (expenses for childcare): Kindergarten, after-school care ( Hort) and au pairs are all largely tax-deductible. Kinderfreibetrag (child allowance): You have kids and your income is above EUR 60000 per year (changes each year, so check for the year you’re filing the returns for) and would therefore benefit more by the Kinderfreibetrag than the monthly Kindergeld. Hold on to your annual Beitragsnachweis (proof of contributions)! Health insurance contributions, whether private or gesetzlich, are also tax deductible. Vorsorgeaufwand (insurance): Life insurance, accident insurance, liability insurance, private pension schemes can all be written off to some degree. Expenses beyond this need to be documented. 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). 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. ![]()
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