Not all employees are required to fill out a tax return. In many cases, however, it pays off, tax experts explain.
Employees are generally not required to file a tax return. In many cases, it can still be worthwhile to submit the tax return voluntarily. This is referred to by the Income Tax Assistance (Lohi) Bavaria in a press release. "According to the Federal Statistical Office, there is an average of 1,095 euros per tax year," writes Lohi. Lohi Bayern has listed the following points for an initial check, which can be declared in the tax return, if any, on the basis of the following points, which can serve as a guide. However, there is not always something in return. There may also be a risk of additional payment if the tax return is submitted voluntarily.
Voluntary submission of tax returns: Lohi identifies points that can be checked
- "High advertising costs above the lump sum (2020 & 2021: 1,000 euros, 2022: 1,200 euros, 2023: 1,230 euros). If the distance between home and work is more than 20 km with a 5-day week, then every additional kilometer brings in something. Even with 210 home office days, the flat rate has already been exceeded. If professional development costs, offices, business trips, work equipment or a double household are added, reimbursement is regularly available."
- "Special expenses (church tax, donations, pension contributions, education costs) bring tax savings."
- "Persons insured with private health insurance with high pension expenses"
- "Have childcare costs been incurred?"
- "Training allowance for adult children in vocational training who live abroad."
- Extraordinary burdens (high medical expenses for inpatient, outpatient and alternative medical treatment, medicine, aids, co-payments and deductibles) in combination with a low income or many children."
- "If there is a degree of disability, there is the disability lump sum."
- "Anyone who cares for relatives free of charge receives the care lump sum."
- 'Maintenance payments to persons of legal age who are not entitled to child benefit.'
- "Were there payments to craftsmen (e.g. kitchen construction, electrical connections, window replacement, washing machine repair, plumbing services, painting, flooring, etc.)?"
- "Are you looking for a domestic helper, gardener, cleaning service, outpatient care?"
- Are the ancillary rental costs (chimney sweep, caretaker, stairwell cleaning, winter service, etc.) shown on the landlord's statement?"
- "Is there an income-related entitlement to the employee savings allowance?"
- "Was withholding tax withheld by banks due to unfavourable distribution of exemption orders?"
- "If the employer has not applied the fifths rule in the case of a severance payment, this can be applied for retrospectively and reduces the taxes."
- "Expenses for studies in the Master's program or after completed vocational training"
- "If capital gains have been earned and the personal tax rate is below 25 percent, the difference to the final withholding tax can be recovered."
- "If you have only been employed temporarily and not all year round, you can secure the full lump sums instead of the pro rata ones."
- "Newlyweds with large salary differences or a single earner can double their allowances or benefit from the splitting tariff."
Source: Lohi Bayern press release of 9 January 2024.
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Not all employees are required to fill out a tax return. There are four years after the end of the respective assessment period for the voluntary contribution.
© Roman Möbius/Imago
What if an additional payment does come out?
If the tax assessment contains a request for additional payment, the application can be withdrawn within one month, explains Lohi Bavaria. But it's not quite that simple: "With an objection and an application for a stay of enforcement, you are in the same position as if the tax return had never been submitted," the message reads. However, you should inform yourself well beforehand and, if in doubt, ask an expert what you need to consider in concrete terms and what deadlines apply in individual cases.
Alternatively, you can have the forecasted tax result calculated in advance and use it to decide whether you want to file your tax return or not, according to Lohi. However, according to the consumer advice centre, it is difficult to make a general statement about when a voluntary income tax return pays off: It depends very much on the individual case, as it says on Verbraucherzentrale.de. "Many tax programs offer a forecast once you've entered your data," it says. "For example, the free software of the tax offices called Elster (electronic tax return) can estimate whether there is a refund without obligation." Some also seek the help of an income tax association, or they rely on professional help from a tax advisor. However, both come at a cost.
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Nine mistakes that cost you a lot of money when filing your tax return
Nine mistakes that cost you a lot of money when filing your tax return
Voluntary filing of tax returns – up to four years
There are four years after the end of the respective assessment period for the voluntary contribution. "If this deadline is overlooked, there will be no extension," Lohi Bayern said in a statement. For the 2020 tax year, submissions can be submitted until the end of 2024. "And while you're at it, you can submit your tax returns for the years 2021 to 2023 at the same time, which can bring in several thousand euros and, if necessary, tax interest." Interest is paid "if the voluntary submission has been waited for more than 15 months after the end of the tax period," according to Lohi.
Category list image: © Roman Möbius/Imago