“The big end is yet to come,” warns Stiftung Warentest. Corona aid is currently saving livelihoods. Those affected should keep a close eye on what will actually be left of the support in the end. “Because many services have to be accounted for in the tax return. It is quite possible that some of the funds received will be lost again, ”the tax experts at Stiftung Warentest point out. According to them, there are some things to consider:
Additional demands for short-time work
Short-time working allowance is free of taxes and social security contributions. “This also applies to the increase by the employer from March to the end of the year, but only if he increases the short-time allowance up to a maximum of 80 percent (with children: 87 percent) of the monthly net”, informs Stiftung Warentest. She warns of an increasing tax burden, “since the wage rate is subject to the progression proviso: the tax office adds the payments to the other income when it determines the tax rate”. The experts advise: “If you have received short-time work allowance, plan additional claims from the tax office.”
Emergency aid is operating income
According to the experts, anyone who has made use of emergency aid as a self-employed person should start calculating immediately: “The self-employed must account for the emergency aid as operating income, so that their tax burden can increase.”
Subsequent debit for the child benefit bonus
Caution is also advised with the child benefit bonus of 300 euros. “Married parents who have a taxable income of more than 67,800 euros in 2020 (unmarried: 33,900 euros) must plan that only part or even none of the bonus will remain after the tax return,” warentest warns. The reason: the interaction of child benefit and child allowances. If the tax advantage is greater than the child benefit, the tax office subtracts the child benefit and only the rest has a tax-reducing effect, the experts explain. You refer to an example calculation by the Federal Association of Wage Tax Assistance Associations. Parents with an income of 75,000 euros receive the 300 euros bonus in this scenario, but have to forego 120 euros in tax savings.
According to the information, a corona bonus to the salary is free of tax and social security contributions up to 1500 euros per year. The aid is allowed alongside other monetary extras, such as a regular subsidy for the monthly ticket.
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