How to Submit a Tax Return in Germany for Expats

 

Let’s Crack This Together!

Hey there! So, you’ve decided to dive into the world of German tax returns. No worries – I’ve been there, and I'm here to walk you through it. Let’s make this as painless as possible, okay?

Who Needs to Submit a Tax Return in Germany?

First things first, let’s figure out if you even need to file one. If you're an expat in Germany and earning money, there's a good chance you'll need to. Generally, if you earn more than €450 per month, have multiple jobs, receive income from abroad, or claim expenses, you’ll need to submit a tax return. And if you're married, you might want to do a joint submission – it can be pretty beneficial.

Deadlines to Keep in Mind

So, when’s the big day? Mark your calendar for July 31st. That’s the deadline for submitting your return for the previous year. If you’ve got a tax advisor (Steuerberater), you get an extension until February of the year after next. It's a lifesaver, trust me.

Gathering Proof of Expenses (Steuererklärung)

Gather every receipt, invoice, and proof of payment you can find. From work-related expenses, like office supplies, to larger investments, like courses or certifications. Seriously, even that fancy ergonomic chair counts. Keep everything organized – it’ll save you a headache later.

The Most Important Document for Your Tax Return

Your Lohnsteuerbescheinigung (wage tax statement) is your best friend here. It’s a document from your employer detailing your income and the taxes you’ve already paid. You’ll also need your ID and tax ID number. Don’t lose these!

Personal Data in Your Tax Return

You’ll need to fill in your personal data – pretty straightforward stuff like your name, address, date of birth, and tax ID number. If you’re married, you’ll also include your spouse’s details.

Handling Multiple Jobs

Got more than one job? You’ll need to declare all the income from each job. Don’t forget to include any freelance or side gigs, too. Every bit of income counts.

Adding Capital Gains

Made some money on investments? You’ll need to declare those capital gains. This includes stocks, bonds, and mutual funds. It might sound complicated, but it’s mostly about reporting what you’ve earned and any taxes already paid on those gains.

Taxes on Crypto

Ah, the crypto conundrum. If you’ve been trading cryptocurrencies, you’ll need to declare those gains too. The rules can be a bit tricky, but generally, if you hold your crypto for more than a year before selling, you might not owe taxes. Less than a year, though, and you’ll need to declare it as income.

What Can You Claim?

This is where things get interesting. You can claim a bunch of different expenses, like:

·       Work-related costs (e.g., travel expenses, office supplies)

·       Health insurance and medical expenses

·       Childcare costs

·       Charitable donations

·       Home office expenses

The more you claim, the lower your taxable income.

Claiming Study Items

If you’re studying or taking courses to improve your job skills, you can claim those expenses. This includes tuition fees, textbooks, and even your commute to classes.

Transportation Costs

Got a long commute? You can claim those costs too. Whether it’s public transport tickets or mileage if you drive. Every kilometer counts.

Home Office Claims

Working from home? You can claim a portion of your rent, utilities, and even internet costs. The key here is to have a dedicated workspace.

Where Will You Get Your Tax Refund?

If you’re lucky enough to get a refund, the tax office (Finanzamt) will deposit it directly into your bank account. Make sure your bank details are up to date on your tax return. It’s like a mini Christmas in your account!

A Detailed Example

Let’s say you’re an expat named Alex. You’re working as an IT consultant with a side gig in freelance web design. You earned €60,000 from your main job and €15,000 from freelancing. You also took a course on advanced JavaScript for €1,200, bought a new laptop for €1,000, and commute 20 km to work every day.

Your tax return would include:

·       Your Lohnsteuerbescheinigung from your employer

·       Invoices and receipts for your course and laptop

·       Mileage for your daily commute

·       Income from your freelance work

You’d declare all this, reducing your taxable income and hopefully getting a nice refund.

Links to Official and Regional Websites

Here are some handy links to get you started:

·       German Federal Central Tax Office: [URL]

·       Your regional Finanzamt: [URL]

·       Expat tax advice: [URL]

And there you have it! Submitting your tax return in Germany might seem daunting, but with the right info and a bit of patience, you’ll get through it just fine. Got questions? Don't hesitate to ask!