Negative income tax
Indeed, negative income tax can arise when deductions and expenses exceed income. In this case, the Income Tax Act provides three options in Section 10 d EStG :
• Horizontal loss compensation , ie offsetting against income of the same type of income.
• Vertical loss compensation , which means offsetting against income from other types of income.
• A loss carried forward to the next tax year.
Support from the income tax aid association
If you are unsure about creating income tax , you can seek help. For that there are different possibilities. For example, you can have your tax affairs handled by a tax advisor. You can also use an income tax aid association.
According to Gradphysics, the costs are kept within reasonable limits, because you pay a one-time admission fee and then an annual membership fee . This is independent of how often you use advice. These do not cost any additional fees.
Income tax calculator
It is possible to get an overview of your own tax burden by using our free income tax calculator. He calculates the amount of income tax on the basis of the taxable income (zvE). Nevertheless, the tax office may come to a different conclusion, which is usually only marginally different from that of the income tax calculator.
It is helpful if you work with an online tool or tax software for your taxes . Depending on requirements, personal demands and budget, there are very different options.
For private individuals
Such programs are less helpful for private individuals who do not have to create invoices or do not have to make advance sales tax returns. For them, online tools like Steuererklaerung.de , which provide step-by-step support, are more suitable .
It is important that the income tax return MUST be made electronically , in paper form it is only permitted by the tax office if there are irrefutable reasons.
Therefore, every taxpayer can also use the software offered by the tax office. This is “ELSTER. Your online tax office ” . Here you can call up various forms, certificates or notices, fill them out and send them directly. There are also many helpful hints and explanations that support you in completing the form and in the individual work steps.
Income tax return
The income taxpayer must or can submit an income tax return, for which certain deadlines must be observed. Not everyone is subject to the obligation to submit a tax return, and it is also a fallacy that an obligation automatically arises from the fact that the voluntary tax return has been submitted in one year. However, it remains to be checked whether it makes sense to prepare the tax return, especially if there were high expenses in the year .
The income tax return should be made electronically , in paper form it is only permitted by the tax office if there are irrefutable reasons. Any taxpayer can use the software offered by the tax office, known as ELSTER , which guides the taxpayer through the calculation.
Income tax return forms
Several forms are required to submit the tax return . Which one you have to use depends in the individual case on which income and expenses you want to claim.
Possible forms are:
- Mantle bow
- Cover sheet for limited taxpayers
- System OFF
- Plant Extraordinary loads
- Appendix FW
- Appendix G
- Annex Household-related expenses
- Annex CHAP
- plant child
- Appendix L
- Appendix N Foreign income
- Appendix R
- Appendix S.
- Annex SO
- Plant maintenance
- Appendix V
- Plant care costs
Important forms in the commercial sector are above all:
It is always part of the tax return and contains important general personal information about the taxpayer or the company. For example, the address, but also information about special expenses, church taxes or extraordinary burdens.
Appendix G – Income from business operations
This annex is important for tradespeople because they have to state the profits achieved per financial year . Here you will also find information on tax reductions, for example if the trade tax is to be deducted.
Appendix S – Income from self-employment
This annex is intended for freelancers who enter their profits or requested tax reductions here . It is the counterpart to Annex G for tradespeople, only slightly shorter.
Further mandatory tax returns for entrepreneurs
In addition to these forms, entrepreneurs and tradespeople must submit further declarations that relate to the determination of profits. Depending on the type of company and the amount of income, this is a profit and loss account (P&L) for everyone who has to keep double bookkeeping, or an income-surplus account (EÜR ) . This is due for annual sales of less than EUR 600,000 or a profit of EUR 60,000.
Deadlines for income tax
Income tax is automatically paid by the employer to the tax office. Anyone wishing to submit a tax return or who is obliged to do so had to do so by May 31 of the respective tax year, the last time this period was valid for the 2017 tax year. As of 2018, other regulations apply:
- The deadline for filing the tax return is July 31st
- The deadline for help from a tax advisor or income tax aid association is February 28 (or 29) of the year after next
If the tax return is submitted voluntarily, the four-year period applies . If you do not adhere to the deadlines, you have to expect a surcharge for late payment, which is calculated as a lump sum or as a proportion of the additional payment.