When can I benefit from filing a tax return?

Every year the same exhausting topic arises: the income tax return. Am I obliged to file a tax return? Can I expect a tax refund or do I have to pay additional taxes? These and a lot of more questions are coming up with regard to the German income tax return.

Generally, there is no obligation to file a tax return when working at one employer during the whole year and when only having employment income. On the other hand, many people are obliged to file a tax return for example when having rental income or foreign capital income. In the following we show some general points which can make filing an income tax return reasonable – although you are not obliged to do so – because of a possible a tax refund.

Possible reasons for a tax refund

• You received a severance payment
• You got married during the year
• You are married and you have tax class IV. Your spouse is not employed or earns considerably less than you
• Child allowance was not taken into account on payroll accounting
• Tax saving due to child allowance is higher than the received child benefit
• You are eligible for a relief amount for single parent
• You paid contributions to Riester or Rürup pensions
• Your insurance contributions are higher than provisional lump sum
• A lump sum for disabled person or bereaved was not taken into account on payroll accounting
• Your expenses are higher than the lump sum for employers in the amount of 1.000 €
• You had extraordinary expenses e.g due to illness for example high dentist cost (not being refunded by your health insurance company), disability, need for care or because you supported a relative in need
• You had expenses for help or services in your household
• You returned unemployment benefit, sickness benefit etc.

Would you like to know whether it is advantageous for you to file a tax return? Please do not hesitate to contact us, we are pleased to advise you!