Tax accounting is an essential aspect of the lives of working people in Germany. Although not everyone is required to file a tax return, it can often be very advantageous. Do you know how many years retroactively taxes can be handled in Germany? What documents do you need for this? And is there a right to such a settlement? Answers to these questions can be found in the following article.
Tax return – how many years retroactively?
German tax law allows for the correction of a tax return within four years of its original filing. This means errors, unaccounted income, or deductions can be corrected. This opportunity to receive additional money back is available to anyone who has worked and paid income tax in this country.
But what if no tax return was filed at all? In this case, if there was no filing obligation, but one wants to benefit from possible tax advantages, they also have four years.
This means that the tax return for the year 2024 can still be submitted until the end of 2028. This is undoubtedly an advantageous regulation that allows for the correction of potential mistakes or inaccuracies in previous tax returns.
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What documents are required for tax settlement for previous years?
Preparing the tax return in Germany for previous years requires gathering the relevant documents – the process does not differ from regular tax accounting. Below you will find a list of important documents.
- Tax return form – depending on the status, this can be one of many available forms – for employees, entrepreneurs, or self-employed.
- Proof of income – this is usually an annual income statement from the employer (so-called wage tax certificate).
- Documents for deductions – these can include invoices for training, costs of business trips, or expenses for work equipment.
- Information about other income – this may concern income from rentals, investments, or other sources.
Of course, the specific documents depend on the individual situation of the taxable person – if tax benefits are to be claimed or costs are to be self-deducted, additional receipts for expenses or a child’s birth certificate are needed.
Who can submit a retroactive tax return in Germany?
Submitting a retroactive tax return in Germany is available to any person who:
- has legally worked in Germany,
- has paid taxes in the form of salary advance payments during the relevant tax year,
- believes that the taxes paid were higher than the actually owed amount.
If these criteria are met and the corresponding documents are available that prove the income and the taxes paid for the years one wishes to settle, a tax refund from Germany can be requested.
If one wishes to settle voluntarily for the year 2024, they have four years for this. This means that the deadline for submitting the documents ends on December 31, 2028.
For which years can one submit a retroactive tax return in 2025?
As previously mentioned, there is a four-year period within which a tax return can be filed if not done so immediately. Thus, in 2025, the years 2024, 2023, 2022, and 2021 can be settled.
If one wants the late settlement for the last possible year, 2019, to be considered, the form and all required documents must be submitted no later than December 31.
Retroactive tax return – for how many years can one settle simultaneously?
Regardless of whether the settlement is done electronically via the official platform ELSTER, an independent program, or in the form of a traditional paper form, up to four declarations can be submitted simultaneously. Therefore, one can settle for four years at the same time, but a separate form is needed for each year.
Tax refund for 4 years retroactively – when is it worth applying?
Anyone who has been legally employed in Germany has the right to apply for a tax refund if the amount of tax withheld from their salary during the year was higher than actually owed.
When such a person submits their annual tax return, the German tax office (Finanzamt) reviews it and determines the correct tax amount. If it turns out that too much tax was paid, the tax office decides on the refund of the overpayment – subsequently, the taxable person receives the refund directly into their bank account.
Not everyone who earns income in Germany is required to submit a tax return, so many choose not to. Often we do not know whether we are entitled to it and whether it benefits us at all. Therefore, it is worth conducting appropriate calculations by using special calculators, consulting a tax advisor, or using our innovative app Taxando for tax settlement. Convince yourself that it is worth utilizing the opportunity of retroactive tax settlement in Germany for previous years, but remember to do so consciously, with care, and always in accordance with applicable law.
Maciej Wawrzyniak
In his private life, Maciej enjoys sporting challenges, playing the guitar, and swimming in the lake. He is also the proud father of three sons.
