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Tax Relief Act: More money for many citizens - especially with a view to the tax return for 2022

2022-05-13T08:55:23.615Z


Tax Relief Act: More money for many citizens - especially with a view to the tax return for 2022 Created: 05/13/2022, 10:45 am Because of the high prices, the federal government has launched several relief packages - some of which were approved in the Bundestag on May 12. © Monika Skolimowska/dpa The Bundestag has passed the Tax Relief Act 2022. Some relief will only be noticeable with the next


Tax Relief Act: More money for many citizens - especially with a view to the tax return for 2022

Created: 05/13/2022, 10:45 am

Because of the high prices, the federal government has launched several relief packages - some of which were approved in the Bundestag on May 12.

© Monika Skolimowska/dpa

The Bundestag has passed the Tax Relief Act 2022.

Some relief will only be noticeable with the next tax return, other help should arrive before that.

Because of the

high prices for heating, driving and in the supermarket

, the federal government has launched several relief packages - part of which was approved in the Bundestag on Thursday (May 12).

Specifically, it is about measures worth billions that are intended to ensure that citizens have to pay

less taxes

.

Those who have a long commute to work benefit in particular.

The following measures are included in the package that was decided on Thursday evening:

The basic allowance increases by 363 euros

The so-called

basic allowance for income tax

will be raised from the current EUR 9,984 to EUR 10,347.

As a result, all taxpayers have to pay less income tax – retrospectively as of January 1 of this year.

The basic allowance is the limit above which income tax is due in Germany in the first place.

If you have an income below this amount – after all deductions such as income-related expenses – you do not have to pay any taxes.

If you get over it, you will pay in future for the income from 10,348.

euros taxes.

Advertising fee is increased

The flat-rate employee allowance also increases retrospectively from January 1st.

This is the so-called income-related expenses flat rate, which is automatically taken into account in the tax return for all employees if they do not state higher income-related expenses themselves.

So far, the taxable income could be reduced by 1,000 euros, in the future it will be 1,200 euros.

Long-distance commuters receive a higher commuter allowance

Anyone who has to travel further to work is

particularly affected by the rise

in fuel costs .

That is why the increase in the lump sum for long-distance commuters, which is actually only due in two years, will be brought forward to this year.

Long-distance commuters are citizens who have to travel 13 miles or more to get to work.

Retroactive to January 1, they can count 38 cents per kilometer, three cents more than before.

However, this should only apply until 2026.

The

commuter allowance is part of the income-related expenses in the tax return

.

However, long-distance commuters usually get slightly more than the lump sum, so they benefit directly from the increase.

The coalition emphasizes that those who have to commute less far will also be relieved of a higher flat-rate income tax allowance.

However, the commuter allowance is controversial, especially among the Greens.

Although it can also be credited to train or bicycle trips, they see it as a promotion of car traffic.

The coalition therefore agreed to reorganize the lump sum in this legislative period and to take better account of ecological and social concerns.

How much does that cost the state?

Finance Minister Lindner will lose tax revenue of around 4.46 billion euros in the current year alone because of the tax relief - money that the citizens also have in their wallets.

By 2026, the costs will add up to around 22.5 billion euros.

Hartz IV: Immediate supplement for children from July 2022

In addition to the tax measures, the Bundestag also decided to provide help for people with little money, who are particularly struggling with the high costs of heating and driving, for example.

Children, adolescents and young adults affected by poverty will receive an

immediate bonus of 20 euros per month

from July .

Families whose income is not sufficient or only just sufficient can now receive 229 euros per child from the state instead of 209 euros, in addition to child benefit.

Adult beneficiaries, such as

recipients of Hartz IV

or

unemployment benefit II

, receive a one-time payment of 200 euros to cope with the increased cost of living.

Anyone who receives unemployment benefit I receives a subsidy of 100 euros.

The money should also be paid out in July.

Criticism: Citizens only receive money after their tax return for 2022

The package does not go far enough for the opposition in view of the high inflation.

The Union criticized on Thursday that the basic allowance would not be raised high enough.

In addition, the money will reach the citizens much too late, namely after the

tax return for 2022

in the coming year.

The government must act faster, especially when it comes to cold progression.

This is a kind of creeping tax increase, when a salary increase is completely eaten up by inflation, but still results in higher taxes.

(dpa/ahu)

Source: merkur

All life articles on 2022-05-13

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