As of: April 7, 2024, 9:44 a.m
By: Anne Hund
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The joy of being able to help others is the main focus of volunteer work. The tax authorities reward personal commitment with tax relief.
Whether in a sports club, at the fire department or in social and cultural institutions: there are volunteers in many areas of life. Doing voluntary work like this - you can help other people or make them happy - and learn a lot yourself and benefit immensely personally. The joy of being able to help others is the main focus. Anyone who volunteers can also benefit from this when filing their taxes.
Running in a group is often much more fun than alone. You can volunteer, for example, as a trainer in a sports club. © Monkey Business 2 via www.imago-images.de
1. Trainer allowance: 3,000 euros per year
Trainers are entitled to the trainer allowance of 3,000 euros per year, as the income tax assistance association Vereinigte Lohnsteuerhilfe (VLH) informs, up to the 2020 tax return it was 2,400 euros. According to the tax experts, this means that the remuneration remains tax and social security-free up to the amount of the trainer allowance.
“In order to benefit from the trainer allowance, you must, for example, be a trainer in a sports club, a choir director in a singing club, a lecturer at an adult education center or a trainer in the volunteer fire department,” says the statement VLH. In other words: “Your activity must be educational.” And a few other conditions must be met:
The activity must be carried out on a part-time basis. “In concrete terms, this means: Volunteering may not make up more than a third of a full-time job,” explains the VLH in its statement.
You can only claim the trainer allowance if you work on a voluntary basis for a non-profit organization or a legal entity under public law - “these can be schools, communities or churches”.
In addition, the volunteer work must “serve directly or indirectly non-profit, charitable or church purposes,” it continues.
According to the experts, the trainer allowance cannot be used “if, for example, you are a secretary or equipment manager in a sports club, work as a referee in your free time, do volunteer interpreting for courts and notaries, or train animals.” After all, as it says on the VLH website, you may be able to benefit from the volunteer allowance, which is also referred to in tax law as the so-called volunteer allowance.
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2. Volunteer allowance: 840 euros per year
Since 2013, volunteers who are involved in a non-profit association or with legal entities under public law have been able to claim the volunteer allowance described, as the VLH specifically states about this possibility. “It is currently 840 euros per year, up until the 2020 tax return it was 720 euros.” In this case, too, this means that reimbursement for expenses up to the amount of the volunteer allowance remains tax and social security-free. “In contrast to the trainer allowance, a treasurer or treasurer, groundskeeper or equipment manager, referee or animal keeper can also use the volunteer allowance,” explains the VLH using examples. Here, too, three conditions must be met:
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This is also a part-time job, “so it should only make up a maximum of a third of a full-time job,” emphasizes the VLH.
Another requirement is that you do the voluntary work for a non-profit organization or a legal entity under public law.
And the volunteer work must serve “directly and indirectly non-profit, charitable or church purposes”.
Flat rates for each volunteer position only once a year
What those affected should know: Even if you carry out several volunteer positions in parallel or one after the other, the respective flat rate for volunteer work - i.e. the trainer allowance and the volunteer allowance - is only available “once a year,” explain the tax experts.
If your earnings exceed the allowances, taxes will be due
“If a trainer or supervisor earns more than 3,000 euros and a volunteer earns more than 840 euros per year, the part of the income that exceeds the tax-free amount must be considered income from other self-employed work be entered in the tax return,” is the important note from the VLH according to its announcement.
Use Appendix N of the tax return
Employees enter the expense allowance received in Appendix N of the tax return - "in line 27 the amount of tax-free income received and in line 21 the amount that may exceed the tax allowance," explained Jana Bauer from the Federal Association of Wage Tax Assistance Associations, according to an earlier statement dpa report. The amount exceeding the exemption amount is taxed at the personal tax rate.
“In general, it is possible to benefit from both the trainer allowance and the volunteer allowance,” emphasized the expert in the article. However, this assumes that the two volunteer positions are paid separately and that each involves different activities.
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The waiver of the expense allowance also has an impact
Another option is to claim a so-called expense donation as tax deductible. In other words, anyone who does not accept any money for their volunteer work from the organization for which they work can deduct the expense allowance to which they are theoretically entitled in their tax return as a special expense, the report continues. It is important that the waiver of the money is agreed in writing, explained Bauer, according to dpa. For this purpose, the respective organization can issue a donation receipt, which must be presented to the tax office upon request.
Volunteering: Keep proof for the tax office
The so-called obligation to retain receipts also applies to the volunteer and trainer flat rates. “You don’t have to attach proof of your activity to your tax return from the outset, but only submit it if the tax office explicitly wants you to.” Be it a payslip or a tax assessment – there is also a retention period for many other important documents.