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{"id":39281,"date":"2020-09-19T17:08:33","date_gmt":"2020-09-19T14:08:33","guid":{"rendered":"https:\/\/liveworkgermany.com\/?page_id=39281"},"modified":"2021-02-11T21:27:02","modified_gmt":"2021-02-11T19:27:02","slug":"submitting-a-german-tax-return","status":"publish","type":"post","link":"https:\/\/liveworkgermany.com\/submitting-a-german-tax-return\/","title":{"rendered":"Submitting a German Tax Return: Necessary? Worth it?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|desktop” _builder_version=”4.3.4″ custom_padding=”|10vw||10vw|false|true” custom_padding_tablet=”|5vw||5vw|false|true” custom_padding_phone=”|1vw||1vw|false|true” z_index_tablet=”500″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”4.2.2″][et_pb_code _builder_version=”4.5.7″ text_orientation=”center”]\"Landingpage<\/a> [\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”4.3.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||||false|true” custom_padding_tablet=”||||false|true” custom_padding_phone=”||||false|true”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”intro” _builder_version=”4.8.2″ hover_enabled=”0″ z_index_tablet=”500″ sticky_enabled=”0″]<\/p>\n

Submitting a tax return<\/strong>\u00a0(German term: Steuererkl\u00e4rung)<\/em><\/strong> is not compulsory for regular employees<\/strong> who have no other sources of income other than their job. It is compulsory<\/strong> for the self-employed<\/strong>, or anyone who has income from other sources totalling more than \u20ac801 annually. However, even if you’re not obliged to, it’s quite possibly in your interest to submit a tax return.<\/p>\n

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German Tax Return: You could be due some money back<\/b><\/h2>\n

 <\/p>\n

Regular employees<\/a> who do not have any income from other sources such as self-employment<\/a>, savings, investments or rental property generally will not be obliged to submit an annual tax return in Germany.<\/p>\n

If this describes you, then you’ll simply have taxes deducted from your earnings at the appropriate tax rate. Check out our guide to German payslips to find out more about these deductions.<\/p>\n

However, as we will explore, it may very well be in your interests to complete one even if you don’t have to.<\/p>\n

Why? Because of the money you could claim back from the Finanzamt<\/em>.<\/p>\n

Is it worth the effort though? That is a much more complex topic, so we’ll take a look at the essentials to help you decide whether it’s worth the cost and hassle.<\/p>\n

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Do I have to submit a German tax return?<\/strong><\/h3>\n

As we explained, for most employees you won’t need to submit a return.<\/p>\n

For the self-employed, it’s compulsory.<\/p>\n

This also includes anyone who earns income from self-employment or freelancing on the side as well as having regular employment.<\/p>\n

If you have other significant sources of income that amount to greater than \u20ac801 for singles (\u20ac1,602 for married couples) annually, you will also need to submit a tax return.<\/p>\n

The most common forms are capital gains from savings and investments, income from rental property and self-employment as extra side income i.e. coaching, teaching, any paid artistic pursuit, evening or weekend work, or any other business interests.<\/p>\n

 <\/p>\n

Why am I obliged to submit a German tax return?<\/h3>\n

Because the Finanzamt\u00a0<\/em>wants to know about any activity you have undertaken where tax is not deductible at source.<\/p>\n

Tax is automatically deducted from your payslip by your employer, if you have a regular hourly wage or salaried job.<\/p>\n

But any other sources of income are unknown to the revenue collection authorities, and by law you are expected to declare them.<\/p>\n

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Is submitting a German tax return worth it for you?<\/strong><\/h3>\n

Below are a few examples where it will make sense to seriously consider submitting a German tax return.<\/p>\n

For higher earners paying a high tax rate, or those with more than one of the criteria below applicable, you could receive a tax refund in the thousands!<\/strong><\/p>\n

This is based on the likelihood of you being able to claim a rebate large enough to make it worth your time (and money, if you decide to go with external help!)<\/p>\n

 <\/p>\n