Tax Return – Tips and Tricks 2023

The tax system is constantly changing and evolving. Therefore, you should keep yourself regularly informed about all changes. Why? Well-informed individuals can save up to a few thousand euros. But how do you do that? You just need to know a few tax tricks. In today’s post, we give you tax return tips that save not only money but also time – and of course, completely legally.

Tax return tips and tricks – Voluntary tax return

Before we get to the tips and tricks for tax returns, you need to know if you have to file a tax return. You can find out in our post Who has to file a tax return?You don’t have to submit a tax return to the tax office? WWe recommend that you submit a tax return nonetheless. In most cases, this promises a tax refund of about €1,000.

Even though a voluntary tax return offers generous deadlines, you should be especially attentive with mandatory returns. Those who miss the submission deadline receive reminder letters from the tax office that must not be ignored. With each day of delay, the default interest increases, which can quickly become expensive.

Now let’s get to the tips and tricks for the tax return. What does that mean in practice? First of all: the longer you wait to submit your tax return, the greater the refund can be. 15 months after the end of the tax year, you get 0.5% interest for each additional month in which no tax refund occurred. Over the course of a year, this results in 6% interest.

Tax return tips – Apply for income tax reduction

Apply for an income tax reduction in your tax return, especially if you regularly incur high costs related to your work. These can be, for example, long commutes or a second residence related to your job. If this is the case, you can ask the tax office for a refund.

If your expenses exceed €600 per year, you can apply for a reduction in income tax. Also consider the advertising costs, which are treated as a lump sum for income-related expenses. If the advertising costs amount to €1,000, your expenses must be increased to a lump sum of €1,600. If you want to apply for the reduction, you must be able to actually prove the incurred costs.

Tax return – Keep all receipts

Our tax return tips and tricks are primarily aimed at individuals with fixed costs. Expenses can best be proven with receipts or invoices. Please note that you must present these to the tax office. So, this tip is very simple: Keep receipts and other invoices to prove the incurred costs. Extra tip: Sort your receipts and invoices by category in the same year..

Professional help is often worthwhile

If all of this seems too complicated or you want to make sure you make the most of every opportunity, a tax advisor can help. Many shy away from the cost, but what does a tax advisor really cost? The fees are legally regulated, often cheaper than expected, and can even be partially tax-deductible. With Taxando PREMIUM, you receive professional advice starting at €99 – payment only after receipt of the tax assessment.

Checklist for complete documents

To ensure that you have all the relevant documents, systematic preparation is worthwhile. A comprehensive list of which documents you need for the tax return, helps you to not forget anything. From the income tax certificate to insurance proofs to evidence of extraordinary burdens – with the right preparation, the tax return becomes significantly easier.

Tax return tricks – Choose quick routes to work

We have already written about work-related costs – including commutes. Here you should know that you can deduct travel costs from taxes. These are treated as business expenses thanks to the travel cost allowance. This tax trick involves always taking the most direct route to work . It is important that it is not about the shortest route. If there is a longer route that you can drive faster (e.g., highway), you can save additional taxes this way!. Wichtig ist, dass es hier nicht um den kürzesten Weg geht. Wenn es eine längere Strecke gibt, die du schneller fahren kannst (z. B. Autobahn), kannst du so zusätzliche Steuern sparen!

If you apply these tax return tricks and tips, you must also keep in mind the regularity of the commutes. If you hope for a tax reduction regardless of the mode of transport, you must travel the selected route regularly. The tax office can also conduct checks here.

To better illustrate this case, we show you an example:

Tips for the income tax return – extraordinary burdens

Did you have additional expenses last year related to illness, accident, care, or funeral, among others? In this case, you may report these costs as extraordinary burdens in your tax return. According to the law, they can be deducted from taxes, which is why you receive a refund of the costs incurred.

An important point is that the total of the costs must exceed a reasonable personal charge , which is calculated as a percentage (individually for each taxpayer – depending on the family situation and income).

Further links: