Meaning of Income Tax Part 4

Income tax assessment

After checking and calculating the tax return, the income tax assessment will be issued , which provides for an additional payment, reimbursement or repayment. Objections to this decision can be made within one month , whereby the objection does not release guilt! This means that any additional payment must be made despite the objection, otherwise there will be a reminder fee. This is calculated as a percentage of the additional payment.

Income tax prepayments

According to Healthknowing, income tax prepayments are to be made quarterly . These are due on March 10th, June 10th, September 10th and December 10th . The tax office determines the amount of the advance payments in the income tax assessment for the previous year for the following year.

Income tax back payments

As a rule, the advance payments should almost cover the tax amount due and most taxpayers can look forward to a repayment after submitting their tax return.

Sometimes the shock is great when instead a request for additional income tax payments flutters into the house. This can have several reasons. Often it is because some flat rates were not specified or special expenses were not recognized by the tax office.

An objection can be lodged against the decision within one month . But the additional payment is still due. Whether a repayment will be made depends on what the tax office determines when it re-examines the notification.

Income tax 2020 checklist

Before you compile your tax records, make sure you think about any areas where you will need to report income or expenses.

Therefore, it is best to check the following points:

  • General information, especially your tax number
  • Proof of income (wage statements, unemployment benefit, sickness benefit, parental benefit, severance payments, pension notices, maintenance payments …)
  • Advertising expenses for non-self-employed work (travel expenses, work equipment, work clothing, travel expenses, training, double housekeeping …)
  • Commercial costs for renting living space (loan interest, maintenance expenses , property tax, water, electricity, garbage collection …)
  • Children (care costs, training costs, care costs …)
  • Special expenses (utility expenses, donations, maintenance paid …)
  • Extraordinary burdens (illness costs, care costs, funeral costs, health resort costs …)
  • Other documents (household-related services, craftsmen’s services, …)


Where do I pay income tax?

In Germany everyone who has their place of residence or habitual abode pays unlimited taxes, which are paid to the responsible tax office . Those who are not domiciled here are subject to limited tax liability and have to pay their taxes to the corresponding other countries.

Where is the income tax return submitted?

At the responsible tax office in whose catchment area the place of residence is located.

Why is there an income tax prepayment?

With this advance payment, the expected tax liability should already be paid down. This helps the state to get a continuous receipt of money and it serves as a protection for the taxpayer against excessively high back payments.

What is the annual income tax adjustment?

In the past, there was a voluntary annual wage tax adjustment for employees who did not have to submit a tax return. Today there is no longer any difference between annual income tax adjustment and income tax return . Everyone has to file a tax return.

How high is the income tax in Austria?

In Austria, an annual income of up to 11,000 euros is tax-free and up to 18,000 euros is taxed at 25% . A table of tax rates is available from the Austrian tax office .

What is the taxable income?

This is the assessment base for corporate tax and income tax . In the calculation, all expenses, losses, allowances and special expenses are deducted from all income determined. What remains is the taxable income.

When do I have to file an income tax return?>

In the case of additional income of more than 410 euros or more than one salary in tax class VI, as well as a divorce and a new marriage in the same year, tax returns are mandatory, for example. In addition, the self-employed are obliged to do so. The deadline for the tax is 31 July of the following year. If you have a tax advisor, you have 7 months longer to do this.


When it comes to income tax, there are a lot of things to consider, mainly because of the frequently changing legal situation and the many individual options. In order not to lose the overview, it is therefore helpful to find information on the relevant websites or to contact a tax advisor or tax relief association. An accounting program or tax program can help you prepare for tax .

Income Tax 4