Whether you’re an ex-pat or a student in Germany, you want to make sure that you comply with the legal and tax obligations to avoid getting in any trouble down the line. That includes filing a tax return in Germany as well!
You usually don’t have to really worry about missing a tax deadline because if you are required to file a tax return, you will be notified by the German tax authorities through a letter.
Nevertheless, it’s imperative that you know the basics of taxation in Germany and how to file your tax return. If you’re interested in knowing this, keep reading this article!
Who Is Required to File a Tax Return in Germany?
If you’re a regular employee with no side job, you aren’t required to file a tax return because your employee will already deduct income tax from your salary and pay you the remaining amount. You can always find the details on your payslip.
However, a freelancer or a self-employed individual is required to file a tax return in Germany. Even if you receive a letter to file your tax return by tax authorities, you must do so, no matter what.
Can You Claim Taxes Back in Germany?
If you file your tax return, you can ask for a refund. Your taxable income can reduce and your tax return can increase by claiming different expenses such as work-related, special, and exceptional expenses.
What’s even better about filing a tax return is that you may receive hundreds or thousands of euros back within 2 to 6 months directly into your bank account.
How to File Your Tax Return in Germany?
There are a few options that you can opt from to file your tax return in Germany.
1. Use the Official Online Form
The official online platform to file your tax returns in Germany is ELSTER (Elektronische Steuererklärung). However, it is super complicated to use and can be quite time-consuming as you have to upload the required documents after setting up your account.
Another drawback is that it is only available in the German language, therefore, it’s better to go for the next mentioned option.
2. Leverage an Online Tax Return Software
If you want to submit your tax return online, you should use other online tax return software such as SteuerGo, Taxfix, and Smartsteuer.
They aren’t only user-friendly and quick-to-use but they will also provide you with tips to maximize your tax refund and reduce your taxable income. Some software may even guide you through the entire process for a small fee.
3. Hire a Tax Consultant
Another option is to submit your tax return offline by hiring a professional English-speaking tax consultant. This option may be a bit more costly than the rest of the options mentioned here, however, they will make sure to get you a higher tax return as well due to their expertise.
They will ask for the required documents from you, fill out the forms on your behalf, and submit them to the tax authorities. As some tax return filings can be quite complex, such as for freelancers or individuals with multiple sources of income, a tax consultant will save you time and stress.
