How do I apply for tax exemptions?

Instead of waiting for tax refunds from the tax office, employees can also have their wage tax reduced directly. What advantages does this bring and what you are then obliged to do.

It usually works like this: The employer withholds income tax from the employee every month. Employees have already done their duty to the tax office. But if you have high costs yourself that you can deduct from the tax, please state this in your tax return and receive a refund later. But that can be done much earlier.

The wage tax reduction procedure is the cumbersome magic word. This is how you apply to the tax office for an allowance – and thus secure a higher monthly net income. Our overview shows exactly how this works, which deadlines must be observed and who can even use the income tax reduction.

What is an application for income tax reduction?

Employees who have high costs should have one Application for tax deduction think. Because with one Allowance you can get one directly higher monthly net salary secure and do not have to wait until the next tax assessment.

This can be high Advertising expenses for a long commute, additional expenses for double housekeeping or high training costs.

Also Special editions such as alimony to the divorced spouse or Exceptional costssuch as high medical costs can be taken into account in the monthly wage tax deduction.

What condition do I have to meet for this?

The expenses are more than 600 euros per year. However, job-related income-related expenses are only taken into account if they exceed the annual Employee lump sum in the amount of 1,000 euros. So if you only claim advertising costs, these should total at least 1,600 euros.

Where do I apply for a wage tax reduction?

You can submit the application directly at the tax office – but only on paper because it has to be signed. Depending on whether you are applying for a wage tax reduction for the first time or want to change an existing application, there are different Forms necessary. You can do both in Form management system of the Federal Finance Administration.

You can use the exemption for two years request. However, if the circumstances change so that the exemption has to be reduced, you must inform the tax office.

The application can reach the tax office in several ways: by post, submitted by you personally or by an authorized representative. Anyone who provides it for the first time must have the appropriate proof enclose.

What are the deadlines?

Anyone who would like to benefit from the beginning of the new year can take action this year, but should no later than January submit the application. An application is still possible afterwards, but it is only valid for the months following the application.

What else is there to consider?

Important to note: Anyone who receives tax exemptions must in any case have one Submit income tax return. The tax office calculates there whether excessively high allowances have been taken into account. Many short-time workers are also required to submit a tax return in 2021. Read here why there is a risk of a nasty surprise.

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