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Employee lump sum increased by 200 euros - so employees get more money back

2022-05-19T11:33:13.195Z

Employee lump sum increased by 200 euros - so employees get more money back Created: 05/19/2022 13:23 By: Anne Hund The employee lump sum increases retrospectively as of 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. © Lutz Wallroth



Employee lump sum increased by 200 euros - so employees get more money back

Created: 05/19/2022 13:23

By: Anne Hund

The employee lump sum increases retrospectively as of 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.

© Lutz Wallroth/Imago

The flat rate for advertising expenses will be increased retrospectively as of January 1, 2022.

Find out here why this limit is of interest to many taxpayers.

In order to support employees, the 

employee lump sum 

for income tax will be increased by EUR 200

to EUR 1,200, retrospectively from January 1, 2022

.

This is what the Bundestag decided on May 12 as part of the tax relief law.

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

This benefits employees who file a tax return.

Employee lump sum increased for 2022 - higher allowances in the tax return

Because income-related expenses can be  stated

with the lump sum or on the basis of individual proof of the costs

 in the tax return.

This is behind the lump sum: Up to now, the state credited all employees with a lump sum of 1,000 euros at the end of the year – the so-called income-related lump sum 

, officially also known as the employee

lump sum .

"These 1,000 euros in income-related expenses will be deducted from your taxable income - regardless of whether you actually had expenses or not," as the United Income Tax Assistance (VLH) announced on its website in February.

So now the employee lump sum will be increased to 1,200 retrospectively at the beginning of 2022

, as the German Press Agency (dpa) reported on the occasion of the Bundestag decision on May 12.

In addition, according to dpa, the basic allowance for income tax will increase from the current EUR 9,984 to EUR 10,347.

You can also find out here why many employees will receive a higher net salary in 2022.

Where is the employee lump sum stated in the tax return?

You do not have to state the income- related flat

-rate separately in the

tax return, as it is

automatically taken into account

by the tax office  .

However, if you have incurred income-related expenses that exceed the flat-rate amount, enter them in 

Appendix N

of  your tax return.

In the event that the expenses exceed the lump sum, you must also submit the

receipts

together with the income tax return - and can thus reduce the tax burden.

What employees should know about the employee allowance

If no or only 

low income-related expenses

 are incurred, the tax office may not reduce the lump sum.

Not even if the employment relationship has not existed for the whole year.

If employees are also pursuing a second employment relationship, you will still only receive the employee lump sum once.

You can also find out more about the special features of the employee lump sum and which expenses in connection with your job you as an employee can claim in your tax return here.

(ahh)

Source: merkur

All life articles on 2022-05-19

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