Page 1 of 1

Income tax allowance 2025

Posted: Thu Oct 31, 2024 12:49 pm
by Sam-I-Am
Not sure if I was sleeping or distracted but are there new rules for employeed workers to apply for income taxt allowance for next year?

Steuergo, who I use to submit my yearly tax return sent me this:
If you want to receive more net from gross income in 2025, you should apply for an income tax allowance at an early stage. This directly reduces your monthly tax burden and thus ensures a higher net income. Employees with high income-related expenses, special expenses or extraordinary burdens in particular benefit from this option.

https://www.steuergo.de/blog/mehr-netto ... fuer-2025/

I think you just have to fill in some paperwork and sent it off... old school German paperwork :roll:

Anyone know if it is worth the effort? I know that will depend; as always; but consider FT employee, €50K Gross, no real deductables as a baseline

Re: Income tax allowance 2025

Posted: Fri Nov 01, 2024 3:04 pm
by fro90
This is not new. If you have "Werbungskosten" exceeding 1.830 per year or other tax-deductible expenses (e.g. Sonderausgaben like disability), then you can apply for an extra tax allowance for 2025. The Finanzamt will usually give you the allowance if your burden is 600 EUR or more (your net salary considers already 1.230 EUR of Werbungskosten, so they only consider expenses above this limit). If you don't have a lot of expenses to deduct, then you cannot apply for it. It's only really designed for taxpayers who have a lot of expenses and don't want to wait for a tax refund at the end of the year.