When Is A Tax Return Mandatory? In principle, we recommend that you consider which is the best way for you to declare income tax before processing your tax return:
TIP! Use our assistant. He or She will help you find out how to prepare your tax return best. So you don’t pay too much income tax!
Application assessment: If there is no obligation to submit a tax return, it is incredibly worthwhile!
Obligation to submit a tax return: the mandatory assessment!
Do I have to file a tax return? In principle, the tax office always expects an income tax return from you if it has to fear that you will otherwise receive too few taxes. In this case, the filing of a tax return is mandatory; one also speaks of the so-called mandatory assessment. This applies to you as an employee, especially if you meet one of the following requirements -but we have to warn you it could differ from country to another country.
- You (or/and your spouse) received wages, and one of you is in the tax bracket.
- You and / or your spouse have entered exemptions in the electronic income tax deduction features.
- In addition to your salary, you have additional income from wage replacement benefits (e.g. unemployment benefit, short-time work allowance, parental allowance, etc.), investment income, rental/leasing, etc.
- You do not have a place of residence, but you can be treated as notionally subject to unlimited tax liability.
- You have received wages from several employers (which are not taxed at a flat rate).
- You have received a severance payment, and your employer has applied the one-fifth rule that is favourable to you when deducting income tax.
- You are an employee, your marriage is divorced (or your spouse has died), and you remarried in the same year.
We all know filing an income tax return is about as popular as having a cold – and at least as annoying. Many employees, therefore, forego the annual stress with the tax office, provided they are not required to file a tax return. This is easy on the nerves, but financially it is the wrong decision in most cases. Because in 9 out of 10 cases, employees with an application assessment (if there is no obligation to submit a tax return) receive money back. That means: The tax return is incredibly worthwhile if I don’t have to do a tax return!
Even if your tax situation does not appear among the cases listed above, you should still submit a tax return under all circumstances. This is mainly because the tax office only deducts the lump-sum rates or tax exemptions from all tax-reducing expenses (e.g. advertising costs, outstanding expenses, pension expenses, extraordinary burdens, but also membership fees, donations, etc.). If your expenses are higher, you can only claim them in the income tax return; otherwise, they are neglected. Means: If I want to claim personal expenses, I have to file a tax return.
If filling out the forms is a hassle, there are three ways you can do some of the work and still have the prospect of a tax refund:
- Control software. Simple, off-the-shelf programs such as Taxman are inexpensive and support you in terms of content and organization when filling out your tax return. So, then you are on the safe side and do not forget any deductible costs. You can find a detailed test of the essential control software products in our comparison test.
- Tax consultant. If you are expecting a more complicated tax return (e.g. due to numerous additional income, second residence, etc.), it is often advisable to go to a specialist. Of the tax advisor knows the connections (e.g. options, or the requirements that apply to the recognition of a study, etc.) and can provide you with competent support in structuring your taxation.
- Income tax relief associations. If your tax return is not as much as complicated, you can also contact income tax relief associations. Although these do not offer the individual depth of advice of a tax advisor, they are usually considerably cheaper.