Status: 02.12.2023, 12:09 p.m.
By: Juliane Reyle
More money in your account with a simple trick? This is possible, because with the wage tax reduction, employees are left with more net of gross.
Employees are familiar with the problem: gross and net salary often differ greatly. Although there will be changes to the minimum wage, working hours and the like for employees from 2024, the wage tax will remain. As a rule, taxes are automatically deducted from your salary. However, employees can apply for a wage tax reduction at the tax office.
The tax office will approve the application under certain conditions. If the application is approved, the employer deducts less tax from the salary, writes "chip.de".
Wage tax reduction brings money for employees: This leaves more net of gross
In order to benefit from the income tax reduction and receive a higher net salary, an application must be submitted to the tax office. For 2023, employees must do so by the end of November. Alternatively, an application can also be submitted for 2024 and thus the allowances can be secured for two years, as "Chip.de" writes. The application may be worthwhile because some employees will receive higher net deductions and less pay from 2024.
But not every application for income tax reduction is approved. The reduction depends on the amount of expenses, such as income-related expenses, special expenses or other extraordinary expenses. For each of these categories, at least 600 euros per year must be spent to receive an allowance.
Income-related expenses for tax purposes
Income-related expenses include, but are not limited to, work clothes, travel expenses, travel expenses, application costs, moving costs, account management fees, training costs. These are all those costs that serve to acquire, secure and maintain revenue, writes "Smart Steuer".
Lump sums and income-related expenses: How to apply for a wage tax reduction
There are lump sums that have already been taken into account. For example, the employee lump sum of 1,230 euros for 2023. An employee must therefore have a total of at least 1,830 euros in income-related expenses in order to receive an allowance in this area.
The tax office offers a help page with detailed rules and exceptions regarding taxes and reductions. For example, travel costs to work can be specified in the application for income tax reduction. The flat rate is 30 cents for the first 20 kilometers and 38 cents for each additional kilometer, writes "Tax Tips".
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The application for income tax reduction for 2023 must be submitted by 30 November at the latest. If the application is approved, less tax will have to be paid from December. As a result, employees are left with more net income from the gross – but it should be checked in order to expect a tax refund in the following year. But be careful: from 2024, some changes will be mandatory in the budget.
There will also be changes to pensions from 2024: This will change for pensioners in the new year.