Big Tax Refund: How Much Money Will Workers Get Back in July?
Created: 07/07/2022 04:47
By: Andrea Stettner
A change in income tax will give millions of workers back overpaid payroll taxes in July.
How much money can you expect?
The consequences of the 2022 Tax Relief Act will already be felt in employees’ wallets from July: With the July salary, employers will refund their employees overpaid wage tax – retrospectively as of January 1, 2022. This is made possible by a change in income tax: the basic tax-free allowance is increased on July 1, 2022 from 9,984 euros to 10,347 euros per year.
In July, employees will be refunded overpaid wage tax - retrospectively to January 1, 2022. The reason is changes in income tax.
© IMAGO/photo booth / K. Schmitt
More net salary: This is how much money employees get back in July
If the basic allowance increases, less income tax is deducted from the salary and paid to the tax office.
This increases net income.
Employees will probably get back the overpaid wage tax from July.
The exact amount of reimbursement for each individual depends on how much the worker earns.
The taxpayers' association has calculated that a
family of four
, in which both parents earn 3,000 euros gross each, saves 256 euros a year in income tax.
Due to the retrospective reimbursement in July, both parents together receive
150 euros more
, from August they have 21 euros more net per month.
Singles
with a gross income of 2,500 euros per month pay
124 euros
less
income tax annually as a result of the change.
According to the Taxpayers' Association, they will have a net salary increase of 74 euros in July, and 10 euros more should end up in their accounts from August.
With a gross income of 4,000 euros per month,
single
workers have 80 euros more left over from the net salary in July, and eleven euros per month from August.
The annual saving thus amounts to
136 euros
.
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Tax Relief Act: Only employees will get money back in July
For the time being, only employees
will benefit from the tax relief in July
.
The self-employed and pensioners who pay wage tax can only claim the higher basic allowances in the tax return for 2022.
Are you currently preparing your tax return for 2021?
Then you can take your time: The submission deadline has been extended from July to autumn 2022.
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