The Voluntary Tax Declaration in Germany – Facts and Myths You Should Know

Under German law, not every person is required to submit a tax return to the tax authorities. However, some taxpayers choose to – although they are not required to – voluntarily submit an income tax return. In connection with the fact that such an action is possible, over the years many myths have arisen that are actually not true. Today we will talk about how the voluntary tax return really works in Germany. What is fact and what is myth? Find out what you need to know!

When is the submission of a tax return in Germany voluntary?

Before we discuss which facts and which myths exist about the voluntary tax return in Germany, let’s briefly talk about who can afford it. Under the current tax system, you do not have to submit a tax return (but you can), if:

• You are in tax class I and have received income from a single employer,
• You are married or in a registered partnership, and you and your partner belong to a combination of classes IV/IV.

Myth: Voluntary submission of the tax return in Germany – once you’ve done it, you have to do it every year

Some taxpayers have the impression that anyone who has at least once decided to voluntarily tax return submit a tax return must do so every year anew. That is of course not true. The German tax authorities know exactly who has to submit their tax return and who can do so. In practice, this merely means that officials distinguish between mandatory and voluntarily submitted tax returns.

If you are not asked by the German authority to submit a form, you don’t need to worry. If you meet the conditions for the voluntary income tax return ,you can submit it every year or, if you deem it necessary, only once.

Myth: The deadline for submitting a voluntary tax return in Germany is the same as for the mandatory tax return.

Another point you must consider is the submission deadline of the voluntary tax return. According to current law, taxpayers who are required to settle their taxes with the tax office must submit the declaration by no later than July 31 of the following year . This deadline is well known to taxpayers, so that those who want to voluntarily submit the document to the authority may have the misconception that this deadline also applies to them.

. Because if you want to voluntarily settle with the tax office, you can submit the form up to 4 years back by the last day of the month of the respective year to the office. Example: If you want to settle for the year 2017, the deadline for submitting the tax return is December 31, 2021.

Preparation is key

Regardless of whether voluntarily or mandatorily – good preparation makes the tax return significantly easier. Find out in advance about what documents are needed for the tax return. With a complete set of documents you can fill out your return faster and ensure that you claim all possible deductions and refunds.

Consequences for missing mandatory deadlines

While there are generous deadlines for voluntary tax returns, it’s different for mandatory returns. If you miss the July 31 deadline, you may face serious consequences. The tax office initially sends reminder letters that should under no circumstances be ignored. Subsequently, late fees and possibly fines follow.

MYTH: The tax advisor is liable for irregularities in a voluntary tax return

Tax advisor is a very popular profession in Germany. Thousands of taxpayers use their services every year, as the German tax system is anything but simple. If you don’t trust yourself to create the tax return and contact the authorities , professional help should be sought.

Due to the popularity of this service, it is wrongly claimed that your tax advisor is responsible for errors in your voluntarily submitted tax return. This myth is not true.

Of course, an experienced advisor will ensure that the data is correct – but it is worth carefully checking so that you are not surprised later. Remember that the taxpayer is responsible for their declaration and that they bear the responsibility for any discrepancies.

What does professional help cost?**

So if you want to submit a voluntary tax return, you should be careful in choosing the tax advisor. Many also wonder: How much does a tax advisor cost? The fees are legally regulated in the StBVV and vary depending on the value of the case. With Taxando PREMIUM , you get transparent fixed prices and the assurance that your data will be entered correctly.

FACT: Voluntary submission der tax return in Germany – without fear of surcharges

Many people considering submitting their tax return voluntarily to the tax office fear that instead of a tax refund from Germany, they will have to pay the difference. Is there anything to be afraid of? No, of course that can happen – after all, anyone can make a mistake. What should you do if you have submitted a tax return and now have to pay taxes? In this case, it is . Gibt es etwas, wovor man sich fürchten muss? Nein, natürlich kann das passieren – schließlich darf jeder mal einen Fehler machen. Was solltest Du tun, wenn Du eine Steuererklärung abgegeben hast und nun Steuern nachzahlen musst? In diesem Fall ist es best to withdraw your application (file an objection). Important: You have 30 days for this – otherwise your objection will be rejected.

NOTE: If you want to withdraw a voluntarily submitted tax return due to a surcharge, you must also apply in writing for a suspension of execution. This means that the payment is only to be made when the application is withdrawn. In this way, you can avoid potential surcharges without any consequences.

FACT: Voluntary submission of a tax return in Germany can be worthwhile.

Let’s conclude with the most important aspect, namely whether it is always worthwhile to submit a tax return to the German authorities. Well, yes! Why? If you are asked to submit a tax return, it means that the office has not received enough taxes from you. However, if you are not obliged to do so and do it of your own volition, you can assume that you have paid too much tax, which means that you have the chance to receive a tax refund from Germany when you submit the tax return. It is worth knowing that

decisions in most cases are successful and the amount of overpayment itself is quite high – on average more than 1000 €. So, you can confidently say that voluntary is profitableincome tax return . And if you have to pay a surcharge, it is worth considering the above-described possibility of an objection. . Und falls Du einen Zuschlag zahlen musst, lohnt es sich, die oben beschriebene Möglichkeit eines Widerspruchs in Betracht zu ziehen.