Tax return for employees: is it worth it?

In short: Employees often get money back through the tax return because not all expenses are taken into account in the wage-tax deduction. For some people filing is mandatory, for many it is voluntary and worthwhile.

In more detail: Income tax is assessed for the calendar year. Wage tax already withheld is credited. The result is a refund or an additional payment.

In Depth

• Mandatory or voluntary: Filing is mandatory, for example, with the tax-class combination III/V, with side income above a limit, with wage-replacement benefits above a limit or when requested by the tax office. Otherwise it is an application assessment, for which usually four years remain.
• How: With the free software ELSTER (access via a certificate, see ELSTER registration) or with commercial programs. Filing is done electronically.
• Typical deductions: Work-related expenses (commuting with the distance allowance, work equipment, training, home-office flat rate, job applications), special expenses (donations, church tax, insurance contributions, retirement provision), extraordinary burdens (medical costs above the reasonable burden), household-related services and craftsman services as tax reduction.
• Flat rates: The tax office automatically applies lump sums. Proof only matters once actual costs are higher.
• Receipts: Usually no longer sent in today, but keep them and present on request (retention periods).
• Pre-filled tax return: The tax office holds much data (wages, pension and health insurance) and enters it. Check and complete.
• Assessment notice: After processing the tax assessment arrives. An objection is possible within one month.
• Help: Wage-tax assistance associations (against a membership fee), tax advisers (tax adviser).

See also: tax classes and wage tax

General information on the legal situation in Germany, not legal or tax advice. Rules and amounts change; in an individual case ask advice centres, a notary, a tax adviser or the authorities.