The tax return – what you need to know?

For many routine people, the tiresome topic of tax returns is an annoying but necessary evil every year again. However, those who have never created one or are out of the loop have many questions. In this amount you will find answers to the most important questions.

What is meant by a tax return?

The tax return is an official form. A so-called tax debtor fills it out and submits it to his responsible tax office. The tax office calculates a tax liability based on the taxpayer's total income in the past calendar year. The result is offset against advance payments made – for example in the form of wage tax in the case of salaried employees. In the majority of cases, this results in a refund or an additional payment.

Since most understand under tax return actually the income tax return, our contribution is also limited to it. Because not only income requires a tax return, but also gifts, inheritance, trade, corporation and turnover.

The tax return - What do you need to know?

What are the advantages of filing a tax return?

Data from the Federal Statistical Office shows that filing a tax return is worthwhile: over 90 percent of all returns resulted in refunds, amounting to an average of 1072 euros and predominantly (57%) between 100 and 1000 euros destatis.en.

Tax refunds result mainly from the fact that various expenses are deductible in the year in question. You reduce the taxable income and save taxes retroactively.

Who is not subject to the tax return obligation?

For single people, a basic allowance of 9.744 euros for 2021, from 2022 it is 9.984 euros – in the case of married couples, double the amount in each case. Up to this amount of income, there is no tax liability and no need to file a return.
Employees subject to income tax already meet their tax liability with the monthly payroll tax deduction by the employer. They usually do not have to submit a declaration, as do many pensioners.

Who is obliged to submit a tax return?

In principle, every self-employed person, freelancer, farmer and trader must declare his income to his tax office.
Among other things in the following cases also employees are liable to pay tax (§ 46 Income Tax Act EStG):

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