Income Tax Aid Association: This Is How Membership Is Worthwhile! For some taxpayers, annual income tax compilation is pure torture. As a result, many people who are not required to file a tax return do without it—and thus giving away money, because on average employees receive a tax refund of around 1000 dollar every year. An alternative is a membership in an income tax aid association. The employees of an income tax aid association are competent contacts when it comes to tax returns and is usually cheaper than tax advisors – but are not allowed to offer all the services that a tax adviser is allowed to offer.
How does an income tax aid association work?
A wage tax aid association mainly advises employees, but also the unemployed, retirees, retirees or recipients of maintenance payments within the scope of its authorization. The membership fees are socially graded according to the income of the members. There is also a one-time membership fee for the association. For the annual fee, you can use the full range of services of an income tax aid association and get advice from experienced, specialized employees—all year round. For an income tax aid association to be able to advise a taxpayer, the latter must have income from non-self-employed work (employee), from pensions or maintenance payments. Besides, the additional income from leasing, speculative profits and capital assets may not total more than 13,000 / 26,000 (individual assessment / joint assessment of spouses). Also, income tax aid associations are allowed to advise taxpayers who receive expense allowances from the public purse or who receive the tax-free trainer lump sum of 2,400 dollars for part-time activities.
TIP: A wage tax aid association is not allowed to advise traders, farmers, foresters and freelancers. Anyone who operates a photovoltaic system as an employee or pensioner and feeds the electricity generated into the grid of an electricity provider for a fee (= commercial income) does not receive any help from an income tax aid association. He has to look for a tax advisor who can help him with the preparation of his income tax return.
When do I benefit from an income tax aid association?
Benefit from membership in an income tax aid association if you are an employee, pensioner or pensioner, as income tax aid associations specialize in preparing income tax returns as part of their advisory powers. These services are provided for a relatively low annual membership fee, no matter how often you need the income tax aid association. As a rule, the counsellor at an income tax relief association will give you some homework on what documents you need to gather at home to prepare the income tax return, and that’s it for you. The tax aid association will fill out the tax return and check the tax assessment for you. You only have to put a signature on the tax return, and you have no other effort with your tax return.
Tax software, tax advisor or income tax aid association?
The wage tax aid association is an excellent middle ground between tax software and tax advisor: Compared to commercially available tax software, the costs for a wage tax aid association are a little higher – but the specialists do most of the work for you. Compared to the tax advisor, in turn, the income tax aid association is a technically equal but significantly cheaper alternative.
CONCLUSION: Advice from an income tax aid association is incredibly worthwhile for those who do not want to deal intensively with their income tax return, but still want to achieve maximum tax savings with a manageable financial outlay.