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The deadline for submitting your tax return is just around the corner. If you haven’t submitted your return yet, you can still save a lot by taking advantage of flat rates and tax allowances.
Frankfurt – Every year, the tax return for the previous year must be submitted to the tax office by a certain deadline. In 2024, this is exceptionally September 2nd. Normally, July 31st was the final submission date. But the wage tax assistance association explains on its Website: “However, the Fourth Corona Tax Relief Act decided to extend the deadline for submitting tax returns even without tax representation. So you have gained a little more time.” And added: “Since August 31, 2024 is a Saturday, the deadline is extended to September 2, 2024.”
Deadline for tax return on September 2, 2024 – save money with legal last-minute tax tips
Anyone who does their own tax return must have submitted it by then. For many people, the tax return is therefore very high on the to-do list this week. But even if there is relatively little time left, you should be careful not to waste any money and claim all tax benefits. However, many people probably don’t even know what can be deducted. Juliane Kutzke, tax expert at Taxfix, therefore gives some tips on how you can still legally save on taxes.
Taxfix tax expert Juliane Kutzke gives tips on where you can save money on your tax return. © Taxfix
1. Last-minute tip for saving taxes: retirement savings can be deducted from taxes
Good retirement provision is important so that you have enough money to live on in old age. The contributions can also be claimed as tax deductions – at least in the case of the Riester and basic pensions (also known as the Rürup pension). Those who have a Riester pension can claim up to 2,100 euros as special expenses. The basic pension offers an even higher tax deduction framework, says tax expert Kutzke.
2. Claim costs for children’s education and childcare
Even those who have children can declare some additional benefits in their taxes – even parents of adult children. Because if the offspring lives in the Training or studying outside of your own household, a tax allowance of 1,200 euros per year and child can be taken into account.
This is possible as long as the children are over 18 and are still entitled to child benefit. Child benefit is paid for children over 18 until they reach the age of 25 when they start training or study for the first time, the Federal Employment Agency on their website. Even if you are doing a second apprenticeship, you can still be entitled to child benefit if your child is working up to 20 hours a week or has a mini-job.
Tax return 2023: Money back for many costs
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There is also great potential for tax savings in the area of childcare. Several aspects can be applied here:
- Two thirds of the childcare costs up to a maximum of 4,000 euros per child.
- 30 percent of school fees up to a maximum of 5,000 euros per year and child.
- Medical costs that were not covered by the health insurance company.
- Relief amount for single parents of 4,260 euros for the first child and 240 euros for each additional child.
3. Recently married? This can also bring tax benefits
Most people are probably aware of the fact that you can save taxes by getting married and changing to a different tax bracket. Which tax bracket is the right one depends on the income of the spouses, or more precisely the difference between the two incomes.
If this is very large, the so-called spousal splitting can also be worthwhile. Tax expert Juliane Kutzke says that the guideline here is if one partner brings in 60 percent or more of the total income. If the difference is smaller, spousal splitting is not worthwhile, according to Kutzke.
4. Volunteering can be taken into account for tax purposes – tax exemption of up to 3,000 euros possible
Anyone who does volunteer work does so out of a social concern – and in most cases free of charge. However, clubs have the option of paying volunteers an expense allowance. This is tax-free up to a certain amount. In most cases, the allowance is 840 euros.
Anyone who works as a trainer, carer or artist within a non-profit organisation or in the church can claim the so-called trainer allowance. The allowance is 3,000 euros. A detailed list of who can claim the allowance can be found on the website German volunteer work.
The deadline for submitting your tax return for 2023 is just around the corner. If you haven’t submitted it yet, you may still be able to save money with a few tips. © Wolfilser/IMAGO
5. Last-minute saving tip for those not required to file a tax return: Filing later can be worthwhile
And even those who are not required to file a tax return should still consider filing their tax return for 2023 and, retroactively, their tax returns for 2020, 2021 and 2022. This can be worthwhile, because “on average, taxpayers receive 1,095 euros back, which corresponds to three euros per day,” said Kutzke.
6. With expert help, the savings potential is often significantly higher
These and many other tax tips can help you save a lot of money. But tax law is often opaque and constantly changing. It is therefore not surprising that many taxpayers do not even know which allowances and flat rates they can claim. It can therefore be a good idea to entrust an expert with your tax return or at least to get professional advice.
This can be done by either a tax advisor or a tax assistance association such as Steuerring or Vereinigte Lohnsteuerhilfe eV (VLH). Some tax software providers – such as WISO Steuer or Taxfix – also offer the option of having the tax return checked by an expert before it is submitted. Going to a tax advisor can also make sense if it is foreseeable that the submission deadline will not be met. In this case, you have significantly more time to submit the return. (sp)
