Wages and Incidental Costs | HEUSER RECHT UND STEUERN
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Tax Return
At the end of a year, every employee
has to file a tax return. In addition to
the automatically tax-free amount, it is
possible to claim for further deductions
and allowances. There are several
deductible expenses that can be reported.
After some weeks, the revenue office will
send back a tax assessment notice and, in
most cases, refund some of the tax which
has already been paid.
Family Tax Relief
Besides child allowance, which is normally
shared between both parents, there is a
special regulation for married couples.
Particularly if there is a considerable salary
difference, it is recommended for married
couples to file their tax return jointly. In
this case, their taxable incomes will be
summed up and divided by two before
taxation. This leads to a lower tax load
as the actual taxed incomes don’t fall
within high tax levels. Married couples
can, furthermore, choose if both partners
want to be classed in tax class IV or split
it to classes III and V. Depending on the
difference of income, one or the other
way can be favourable. For married sole
earners, tax class III is, however, the most
favourable.