End of year tax tips: How to secure the best refunds!

The United Wage Tax Aid e.V. (VLH) has published important information on submitting tax returns. In particular, the VLH points out that receipts and supporting documents must be presented at the request of the tax office, but should not be submitted with the tax return. This is intended to make it easier to handle and process the declarations at the tax offices.

Another note concerns the payment of bills for tradesmen, household-related services or childcare costs. These should be paid non-cash, as the tax office only recognizes invoices paid non-cash. In addition, incorrect bank details can lead to delays in tax refunds and cause problems if the specified account does not exist.

Important tax aspects

An often-heard myth is that a raise can lead to a lower net worth. Contrary to this assumption, there is usually a little more net left over. Tax progression results from the rule that people with low incomes pay little income tax, while with higher incomes the tax burden also increases.

It should also be noted that higher income can have an impact on entitlement to social benefits such as housing benefit. Social benefits such as unemployment benefit or parental benefit are tax-free, but are subject to progression, which can increase the personal tax rate. If social benefits exceed the limit of 410 euros per year, there is an obligation to submit a tax return.

Spousal splitting offers married couples an opportunity to save taxes. The income of both spouses is added together, halved and the income tax is calculated on the halved income and then doubled. The splitting tariff can be advantageous, especially if there are large differences in income between the partners.

Support with tax returns is permitted within the family circle; Spouses, siblings and parents are allowed to help as long as no money is paid for it. In addition, it is also permissible to seek professional help from tax advisors or income tax assistance associations.

For further information on forms of assessment for spouses and registered life partners as well as the progression proviso, see the detailed information on Haufe.

More about general tips for tax returns can be found on the website MDR to find.