Every year it comes back, very clandestine and yet surprising each time – the tax declaration. Many people have to down-right force themselves to deal with the topic of taxes. You don’t have any desire to comb through tax forms and in the process, quickly lose site of it all. From now on you don’t have to worry, because we have the perfect tax tool for employees that provides the best solution for you.
You can do your income tax return quickly and easily online with us. In addition, you just have to send them in and lickitysplit, that topic is taken care of. We’ve made a list of the most important items that an employee can deduct from their taxes.
MOVING EXPENSES (Umzugskosten)
Moving expenses are included in the services close to home. Singles can deduct up to € 746, married couples can even deduct up to € 1,493 from their taxes. Each additional change of residence is € 746 for singles and € 1,528.
TELEPHONE AND INTERNET COSTS
If you use your mobile phone for work-related purposes, you can deduct 20% of the amount invoiced, but only a maximum of € 20 a month.
TRAVEL EXPENSES (Dienstreisekosten)
It has been possible since 2010 to deduct costs for business trips as an advertising expense (Werbungskosten).
COMMUTER FLAT RATE (Entfernungspauschale)
Unfortunately, we still can’t teleport to work and for this reason, the tax office has granted us a commuter flat rate (Entfernungspauschale) of 30 cents per kilometer per trip (only one way is taken into account).
HOUSEHOLD SERVICES (Handwerkerleistungen)
No one likes to clean. So, it can happen that dust starts to collect on the TV or the shelves. If you like, you can avoid doing cumbersome housework, by hiring a household cleaning service. Not only are household expenses deductible, but also invoices for gardening and outpatient care services. The maximum amount covered is € 4,000.
TAX EXEMPT AMOUNTS 2018 (Freibeträge)
- Grundfreibetrag: 9.000 Euro
- Kinderfreibetrag: 7.428 Euro
- Kindergeld (1. und 2. Kind) 194 Euro
- Kindergeld (3. Kind) 200 Euro
- Kindergeld (ab 4. Kind) 225 Euro
DOCUMENTATION FOR THE JOB SEARCH (Bewerbungskosten)
So you’ve got your degree in your pocket and now it’s time to get down to the nitty-gritty. CVs and cover letters have to be written and you need to get the attention of potential employers. Thus, costs for technical literature, portfolios etc. can be deducted from your taxes. € 2.50 can be estimated for an electronic application and € 8.50 for applications submitted per post.
PROFESSIONAL ORGANISATIONS (Berufsverbände)
If you are a member of a union or professional organisation, you are able to deduct your dues for the full amount from the tax office. Your best bet would be to send proof of your membership in with your tax declaration.
Funeral costs can be deducted from your taxes. Such twists of fate are considered exceptional burdens. But please note: costs for the burial (gravestone etc.) can only be deducted if a possible inheritance does not exceed the total price of the funeral.
A workroom isn’t always a workroom. Meaning, the room is normally not used for private purposes. This especially includes workstations for teachers, professors etc. Currently, up to € 1,250 can be deducted.
RETIREMENT PROVISION (Altersvorsorge)
Yeah, we’re all getting older. That’s as sure as saying “amen” in church. We shouldn’t depend solely on our statutory pension during our golden years; instead, we should also have a private pension scheme. Employees have been able to better deduct their private pensions since 2017. Fees for statutory pension funds or for other pension providers can be deducted. Currently, the maximum amount is € 23,362, of which 84% can be deducted.
COMPANY PENSION SCHEME (Ehrenamt)
No one wants to fight with the topic of retirement or not? Often, an employer will offer a company pension scheme. Up to € 3,048 is funded annually. In addition, € 1,800 can be invested into a company pension scheme tax-free.
Parents who have children under the age of 14 can now deduct two-thirds of childcare expenses from their taxes. There is not an age limit for mentally or physically disabled children. Club dues, on the other hand, cannot be deducted.
After a few years, that garish green wallpaper is finally going on your nerves. Wait, maybe those beautiful brown tiles that don’t look that chic any more. Renovation, installation, maintenance or refurbishing costs of up to € 6,000 can be specified in the tax declaration.