The annual tax return in Germany (Steuererklärung) for beginners
Translated from the Arabic original. Read in Arabic
Many employees in Germany never file a tax return because they think it is complicated or unnecessary, and they often lose money they are owed. The tax your employer deducts each month is an approximate advance payment; the annual return calculates your real tax and refunds the difference if you paid too much.
Who must file?
The law requires some employees to file, notably: married couples who chose tax classes 3 and 5 or class 4 with factor; people who worked two or more jobs at the same time (class 6); people who received wage-replacement benefits of more than 410 euros in the year, such as unemployment benefit (Arbeitslosengeld I), parental allowance (Elterngeld) or short-time work allowance (Kurzarbeitergeld); and anyone with additional income on which no tax was deducted.
When does filing voluntarily pay off?
If you are not required to file, you may still file voluntarily to reclaim overpaid tax for the last four years. You often benefit if you started or stopped work mid-year, have a long commute, paid for job-related training or language courses, moved home for work, or bought work equipment such as a computer you use for your job.
Deductible expenses
Work expenses (Werbungskosten): the commuting allowance, professional training, work equipment, job application costs and part of work-related moving costs. Every employee automatically gets a flat allowance of 1,230 euros a year, so itemising only helps if your total is higher than that. There are also special expenses, such as some donations to recognised organisations, and extraordinary burdens such as large medical costs your insurance did not cover.
Deadlines
If you are required to file and do it without a tax adviser, the usual deadline is 31 July of the year after the tax year. With a tax adviser or an income tax assistance association the deadline is later. For voluntary returns you have four years: a return for 2022, for example, can be filed until the end of 2026.
How to file for free
The free official portal is ELSTER. You register once with your tax number and receive an activation code by post, then fill in the forms online. Much of your data, such as salary, tax withheld and insurance, is already there because your employer sends it electronically, so you can import it instead of typing it. If your case is complicated, income tax assistance associations (Lohnsteuerhilfeverein) offer the service to employees for a moderate annual fee.
After filing
The tax office issues a tax assessment (Steuerbescheid) showing your final tax and the refund or amount due. Check it carefully: if you find a mistake, you have one month from receiving it to object in writing.
This article is general information, not legal or tax advice. Laws change, so check the official sources below or the competent authority for your situation. Found a mistake? Tell us.