What are some tax tips

Tax tips 2020

This will save you a lot of taxes at the end of the year

Udo Reuss
Tax Expert As of December 8th, 2020

Udo Reuss

The tax lawyer and business graduate Udo Reuß is responsible for tax issues at Finanztip. Before that, he worked for various business and specialist publishers such as Handelsblatt, F.A.Z.-Verlagsgruppe, Haufe-Lexware and Vogel Business Media - 14 years of which he worked as editor-in-chief of trade magazines. He draws the relevant judgments for tax savers from the complex tax law.

  • You should definitely make some upcoming expenses this year. Postpone others to next year.
  • Another classic: Couples who say “Yes” by the end of December can save taxes for the entire past year.
  • Important applications before the turn of the year: Riester allowances, housing bonuses, employee savings allowances for previous years, voluntary income tax return 2016 as well as exemption orders and loss certificates at your bank.
  • Spend money now: You should bundle expenses for the job, i.e. advertising expenses, in order to get over the annual flat rate.
  • Even with costs due to illnesses, it is worthwhile to summarize high expenses in one year.
  • Get the most out of it as possible: For household services, craftsmen and for the mini-job at home, you should plan well in order to exploit maximum amounts every year.
  • Also check whether the amount of your Riester or Rürup contributions as well as for the company pension is still right.

Have you ever had your apartment renovated for what felt like a fortune and were still only able to claim part of the craftsman's costs in your tax return?

There is one for craftsmen's expenses Maximum annual amount- and for a number of other issues too. Be clever and check in good time to what extent you have already reached maximum amounts with your previous expenses in the course of the year. Terminate wise your tax-deductible expenditure and get even more out of the tax.

Which expenses should you make and when?

Not only entrepreneurs, but also employees can save a lot of taxes through some measures in the last weeks of the year. Often it is a question of whether you still invested in the old year or prefer certain issues move should.

It doesn't just depend on the achievement of the differentMaximum amounts from, but also from your personal life situation. If it is foreseeable that your taxable income in 2021 will be significantly lower than in 2020, it is worth spending money quickly before the turn of the year so that the expenses still have a tax-reducing effect. This applies, for example, in the event that you are about to retire from Threatened unemployment or when parental leave is due.

Of course, it should be sensible expenses that you simply prefer - for example for further training, for office supplies, specialist literature or a new smartphone as a work tool.

On the other hand, do you expect that in the next year - for example after a promotion - you will clearly earn more, then you have to expect increasing tax payments because of the progressive tax rate. Here, higher spending in 2021 will bring you greater tax savings.

Such strategic considerations are at the beginning. Then you check the invoices and receipts for the current year and sort them according to the respective tax expense categories. Do you discover potential tax savings through reasonable expenses this year? If you can afford it, then quickly plan the upcoming expenses that are tax-deductible. Note that it is on the Time of payment arrives. In this respect, a Prepayment or deposit be tax-advantageous.

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How do tax exemptions affect wages?

Over the year, many employees pay more wage tax than they actually have to. This is because wage tax is an advance payment on income tax and is deducted directly from the monthly salary. How much you actually owe the tax office, however, you will only find out much later in your tax assessment. If you want to pay less taxes over the year, you can get one for certain ongoing expenses individual allowance have it entered on the electronic income tax card.

The prerequisite for this is that you basicallyat least 600 euros have to bear such expenses in the year. This can be expenses in a wide variety of categories. When it comes to income-related expenses, however, the tax office only considers employees' expenses above the flat-rate fee of 1,000 euros.

The Application for You can get a wage tax reduction for the current year until 30th of November at your tax office. It already affects your payroll the following month. The full tax exemption for this year is then divided over the remaining period of the year.

Example: You submit your application to the tax office in October, then the employer divides your tax allowance for 2020 halfway between the salaries in November and December. If you only apply in November, your net salary will be significantly higher in December and you will have more cash for Christmas gifts.

In the application for a wage tax reduction you can apply the tax exemption for apply for two years. The tax exemption is saved as an electronic wage tax deduction feature (ELStAM) and automatically taken into account by the employer for the next payroll.

To get the tax exemption, you have to have yourProve expenses can. These can include:

Here some examples:

But be careful: If the tax office grants you an exemption, you are obliged to submit a tax return. You can find more on the subject in our guide to wage tax reductions.

When should you change the tax class?

Especially Married should always check whether they still have the right one Tax class combination to have. This depends on how much wage tax, solidarity surcharge and church tax the employer deducts from the monthly payroll.

If your spouse and you earn the same amount, then you are both in good hands in tax class IV. If the salaries differ slightly, you could both switch to tax class IV with a factor. If one of you earns at least 60 percent of the family income, then the higher earner should switch to tax class III. The other partner then receives tax class V. Den Change the You have to contact the tax office apply for.

Of course, you can always have excessive tax deductions corrected with a tax return and then receive a tax refund. At Wage replacement benefits However, an unfavorable tax bracket leads to a definitely lower income.

If either of you expects to be unemployed in the next year, then you should aim for a higher net salary with a cheaper tax bracket. Because Wage replacement benefits are based on the net salary. For example, the tax bracket in January of the year of benefit receipt counts for unemployment benefits. Similar considerations also apply to the parental allowance and parental allowance plus for expectant mothers and fathers. The one of you who will predominantly look after the child should switch to tax class III at least seven months before maternity leave or the birth. This increases the net salary and thus also the parental allowance.

If you are a single parent and only live with one or more children, you should choose the cheaper one Tax class II apply for.

Which household expenses can you deduct when?

Although living expenses are not actually tax deductible, there are some exceptions that you should use.

Craftsman services

The state subsidizes renovation and repair work in your household. Whether it's a change of scenery, new windows or a renovated bathroom - you can claim these handicrafts in your tax return. You can deduct 20 percent of the paid labor costs directly from your tax liability, a maximum of 1,200 euros per year. This corresponds to a total output of 6,000 euros. This also includes travel and equipment costs, but not material costs.

If you hire a craftsman towards the end of the year, check to what extent you have already exhausted your options for tax deduction. If the tradesman's bills paid in the current year are close to or above the maximum amount, you should get the job - or at least that Pay - to the coming year move. Because for the tax office, the date of payment counts, not that of the work or the invoice.

Example: You have had the entire apartment renovated for 4,000 euros this year and want to redesign the bathroom at the end of the year, which costs another 4,000 euros. In this case, you should try to agree a partial payment with your craftsman and push half of the bill into the new year in order to spread the tax advantage over two years.

However, if your tradesman's bills in autumn are still well below the maximum limit of 6,000 euros, it can make sense to commission and pay for an upcoming repair in the current year. So you have the entire maximum amount in the coming year.

The tax reduction requires that you have a invoice that lists the labor costs. You also have to pay the amount transfer. You can read more details in our guide to craft costs.

Household services

You should also pay attention to the date of payment for household services. This applies, for example, to the costs of caring for an old or sick person in your household, private childcare and the wages for cleaning assistance. Labor costs for household services up to a maximum of 20,000 euros you can claim in the income tax return. This results in a direct one Deduction of up to 4,000 euros annually from your tax liability.

Help in the garden or winter service are also included. Depending on whether you have already reached the maximum amount in the current year or are still well below it, it can be worthwhile to settle a current invoice this year or to postpone it to January. The same applies here that the amount that you paid in a calendar year counts.

Tip: As Tenant you can calculate the expenses for household-related services from your Service charge settlement claim in the next tax return, for example house cleaning or winter service. Make sure that the items in the utility bill are broken down in detail and assigned to your apartment. If not, ask your landlord for a certificate.

You can read exactly how you can discontinue these activities in our guide to household services. This is regulated by law in Section 35a of the Income Tax Act: “Tax reduction for expenses for household-related employment, household-related services and craftsmen's services”.

Mini job in private household

You can also use household-related services in another way: by employing a domestic help in your private household. You register your energy, for example caring for your children or a person in need of care in your apartment, at the mini-job center and pay up to 450 euros per month as wages using the household check procedure. Up to 2,550 euros in the year you can use it as wage costs. That’s 20 percent, so 510 euros, as maximum tax refund inside.

If you make the most of your tax-saving opportunities in terms of craft costs, household-related services and mini-jobs, you will receive a total tax reduction of 5,710 euros (1,200 + 4,000 + 510 euros).

Instead of one Mini jobbers to keep someone busy subject to social insurance hire. This activity is deductible as a household-related service. The maximum tax limit is 20 percent of the expenditure of a maximum of 20,000 euros, i.e. a maximum of 4,000 euros.

As a mini jobber or employee subject to social security contributions, you can employ a relative who does not live in your household.

Note the minimum wage

With a mini job, you can generally pay a maximum of 450 euros a month in wages. The legal one Minimum wage rises from 9.35 euros per hour to 9.50 euros from January 2021 and even to 9.60 euros in July 2021. The employer usually pays the flat-rate taxes.

In order for the mini-job, which is paid with a minimum wage, to remain tax and social security-free for the employee, he may work a maximum of 48 hours per month. You may have to die by January 1, 2021 Number of hoursthat you have agreed with your mini-jobber in the employment contract to 47 hours and from July 2021 to 46 hours to reduce. Otherwise there is a risk that you will have to pay wage tax and social security contributions if you exceed the mini-job limit.

How to deduct the highest possible medical costs?

Do you need dentures, new glasses or even laser eye surgery? Then these are medical expenses that you can deduct from your tax as extraordinary burdens. However, only if this expenditure is one in the opinion of the legislature exceed reasonable load.

The tax office determines your individual load limit. Depending on your marital status, number of children and total earnings, this is 1 to 7 percent of your annual income. There are three income levels with increasing percentages. Since the judgment of the Federal Fiscal Court of January 19, 2017 (Az. VI R 75/14), a more favorable one for taxpayers applies step-by-step calculation of the reasonable burden. Only that part of the total amount of income that exceeds the limit amount will be debited with the higher percentage. This allows taxpayers to deduct higher and earlier amounts as extraordinary expenses.

Example: A married couple with two children has a total income of 58,550 euros. In the past, 4 percent of the total amount, i.e. 2,340 euros, was set as a reasonable burden. Now it is made up of three parts at each income level; it is now only 1,675 euros. The costs above this are tax deductible.

Single people without children must bear at least 5 percent, but no more than 7 percent of the total amount of their income as a reasonable burden. You can calculate your individual reasonable burden on the website of the Bavarian State Tax Office.

The date of the is always decisive paymentfor which year the tax office recognizes the costs. That is why you should always work to ensure that your plannable high expenses are as high as possible in a single calendar year arise. Instead of one invoice in December and a second in January, the dentist should invoice you for the entire cost this year. The higher the bundled costs, the sooner you will come over your limit.

Since you always only know at the end of the year whether your medical costs exceed the reasonable burden, you should get all bills in the current year collect

You can find typical medical costs here:

  • A new pair of glasses can quickly cost a few hundred euros, there are hardly any additional payments from the health insurance company;
  • also with dentures,
  • for orthopedic shoes,
  • Prostheses,
  • Massages or therapeutic, physiotherapeutic applications,
  • as well as prescribed psychoanalytic or therapeutic treatments, you pay a large share;
  • Co-payments for prescription drugs can be taken into account;
  • it also includes travel expenses to doctors, hospitals and pharmacies.

Tip: In addition to the costs of illness, expenses for the replacement of household items, for example after a flood, are among the extraordinary burdens of a general nature. These types of expenses can be grouped together in order to reach the burden limit.

You can read more about this in our detailed guides on Extraordinary Burdens and Medical Costs.

Privately insured persons: prepay premiums in 2020?

In the Annual Tax Act 2019, a change was implemented in the special expenses that affect privately insured persons.If you are one of them, you can deduct the actual amount of the contributions to your basic health and compulsory long-term care insurance as pension expenses.

In principle, this also applies to in the payment year Prepayments for subsequent years. Where there is one legal limitation gives: Now you are allowed to Triple Pay the current annual fee in advance (until 2019: only a maximum of 2.5 times) and deduct it in full in the payment year. This limit now applies to all prepayments, including contribution relief in old age. The excess contributions are only deductible in the year for which you paid them (Section 10 Paragraph 1 No. 3 Sentence 4 EStG).

How can you use advertising costs effectively?

You can claim professional expenses as income-related expenses and in this case, too, the date of payment can determine how much the tax authorities recognize. 1,000 euros will be deducted from the taxable income of each employee as income-related expenses. Only the expenses that are higher will really pay off.

Do you have a long commute to work, do you bear business travel costs yourself, do you have to move for professional reasons or do you want to do further training that will advance you professionally? Then there is also the option here to cleverly schedule the expenses so that youabove the Employee lump sum come

Are you stuck with your professional travel expenses, with specialist literature or expenses for work equipment in the current year just under 1,000 euros, then plan an upcoming further education so that you can pay the bill in the current year. If, on the other hand, you are planning further work-related expenses for the coming year, you should perhaps only pay for your further training in January. So you can then possibly "crack" the lump sum.

In the Corona year 2020, make sure that you pay for the travel costs only actually can deduct the trips made with the distance flat rate. Like many employees, you have probably hardly driven to the office and are therefore allowed to deduct significantly less travel expenses. Instead, you may be able to deduct the cost of a home study.

You can read all about advertising expenses in our advertising expenses guide.

Use immediate depreciation

If you use a private item at least 10 percent professionally, you can use the respective item Cost share tax deductible. If you use the work equipment at least 90 percent professionally, you can deduct the entire costs.

Work equipment that costs up to 800 euros net, i.e. with 19 percent VAT a maximum of 952 euros, is considered a so-called low value asset (GWG). You can do this in full write off immediately. It can therefore be worthwhile to buy a laptop that you need anyway in the old year. An esteemed professional share the tax offices usually accept 50 percent.

Similar considerations apply to a desk or a cupboard in your study, for example. Regardless of whether the tax office recognizes a work room with you, you can sell work equipment you need for your job. If the costs are above the GWG value limit, you have to write off your piece of office furniture over 13 years, a computer over three years, a smartphone over five years.

Double housekeeping

Do you need a second apartment at the place of work for the job? In order for the tax office to recognize double housekeeping for a single person, the person must be able to prove that he or she has at least 10 percent of the running costs has paid for the common household. This can be proven with a transfer by the end of the year.

What do company car users have to pay attention to?

Employers have many options for granting their employees salary bonuses - for example a company car.

Company car drivers can keep a logbook

If you are self-employed or an employee who is also allowed to use a company car privately, you have to pay tax on a pecuniary benefit. Many taxpayers choose the flat-rate one percent rule. Often, however, is the alternative Logbook method tax clear cheaper. A change of method is only for Beginning of the year possible because a logbook must be kept seamlessly throughout the year.

Think about whether you might get yourself an electronic logbook beforehand, for example. In any case, this saves a lot of time compared to a handwritten one.

cases, in which a logbook tends to be the cheaper option for tax purposes, are the following:

  • The gross list price of the car is high.
  • You are using an old, used or already written off vehicle.
  • You drive relatively little privately.
  • You commute to work by car and have a long distance.
  • The deductible vehicle costs are relatively low.

Infrequent drivers should choose the individual assessment

Is it foreseeable that you will drive from home to the company less often in 2021 - perhaps because of short-time work or home office? Then you should use a possibility to have to pay less taxes for the monetary benefit: the individual evaluation of the trips.

It is possible if you have your company car on less than 180 days in the year to commute from the apartment to the first place of work. You then have to make a note of the days on which you use it for this. Normally, with the one percent rule, you have to set 0.03 percent of the gross list price per kilometer distance for each month. In the case of the individual assessment, however, it is only 0.002 percent per working day driven and distance kilometers. The less you drive, the less tax you have to pay.

However, your employer is not allowed to change this assessment method during the year. So use the turn of the year to see them to change. Let your employer know in good time that you are taking off your journeys documentso that the method can be changed at the beginning of the year. You can get back overpaid taxes using Appendix N of your tax return.

Tax advantage for electric company cars

For one Electric company carfirst purchased or leased on or after January 1, 2019, there is a tax break. Only half of the gross list price is used to calculate the pecuniary benefit. As a result, your tax and duty burden will be lower in such a case.

For purely electric cars with a gross list price of a maximum of 60,000 euros (previously only up to 40,000 euros), from 2020 you will even have to only 0.25 percent taxed monthly. If your employer has paid wage tax on a monetary benefit that is too high, he must correct this.

And another benefit from the 2019 Annual Tax Act: Will an entrepreneur create a new one powered solely by an electric motor from 2020 Delivery vehicle on, he may half of the acquisition costs as part of a Special depreciation in addition to normal depreciation. The electric delivery vehicle must approved for the first time and may weigh a maximum of 7.5 tonnes (Section 7c EStG). The benefit also applies to Electric cargo bikes.

You can benefit from this tax break if you need the electric delivery vehicle to generate business income, for example as a dealer or farmer.

Tax advantages for company bike and job ticket

By the way: If you as an employee get a company bike from your employer, you can benefit from very favorable tax rules. It is tax-free if you have it in addition to the wages owed anyway receive.

Since the beginning of 2019, your employer has had another option to provide you and your colleagues with a tax-free and social security-free salary bonus: that Job ticket for public transport. That too is tax-free if you have it in addition to the salary get.

However, you have to state this benefit in your tax return. The tax office will then reduce your flat-rate removal fee accordingly. If your employer for the job ticket flat-rate Paying 25 percent wage tax is the advantage Not counted towards your commuter allowance. You can therefore use this model from 2020 even with one Salary conversion use. Your boss pays you a little less money because he grants you the difference to your previous salary in the form of the job ticket as wages in kind.

How can you secure the full Riester allowance?

If you've recently changed jobs or got a raise, you may need yoursAdjust Riester contributions. Because if you pay too little into your Riester contract, you get no or reduced allowances. Check hence yours Own contribution

The contribution you make annually at least You have to pay in to receive your full bonuses is 4 percent of your previous year's gross amount subject to pension insurance - minus your savings bonus entitlement. Relevant for 2020 is the gross income subject to pension insurance for 2019. You can find this amount in your 2019 annual report on social security.

It is best to contact your Riester provider after a salary increase. He will help you calculate the new contributions and adjust your payments. You can still apply for the current year until the end of the year count.

The state supports Riester savers who invest, for example, in a pension insurance, a fund savings plan, a bank savings plan or a building society loan agreement with a basic allowance of 175 euros. For every child born in 2008 or earlier, there is an allowance of 185 euros; for children born after 2008 you will receive 300 euros.

Example: A single mother with one child earned 45,000 euros gross in 2019. In order to receive the full allowance for yourself (175 euros) and your child (300 euros) for 2020, she must pay 4 percent of this, i.e. 1,800 euros less allowances: 1,800 euros - 175 euros - 300 euros = 1,325 euros. For example, if she has paid 100 euros a month by the end of November, i.e. a total of 1,100 euros by then, she should pay a total of 225 euros into the contract in December in order to receive the maximum funding. Pay her Less, is promoting reduced as a percentage.

If the child benefit no longer applies in 2020, for example because it has turned 25, then the child benefit does not apply. You would have to adjust your own contribution accordingly.

If you earn more than around 52,000 euros a year, you secure full funding if you pay at least the following amount into your Riester contract: maximum funding amount 2,100 euros minus allowance entitlement.

If both partners of a married couple are subject to pension insurance and are therefore each entitled to the Riester subsidy, the total is 4,200 euros Special edition deduction possible - for each 2,100 euros. However, if only one person is eligible for funding, this alone can deduct a maximum of EUR 2,160 special expenses.

Tip: If you are going to be a father or mother, inform your Riester provider immediately. This is how you secure the Child allowance. If a child falls out of eligibility, you must also report this. Within four years, the tax office can claim back any overpaid funding.

You can either get the Riester allowance or up to 2,100 euros deduct as a special expense in the tax return. The tax office will calculate which alternative is cheaper for you. To do this, you have to fill out Appendix AV and attach it to your tax return.

If you are not yet ready and want to get in, you have to close quickly. You can pay into your Riester contract until December 31st to receive state funding for this year. The minimum own amount for a Riester grant is 60 euros per year.

Tip: If you have not submitted a permanent allowance application, you can receive your Riester allowance for two years apply retrospectively. So, for example, you can still save the allowances from 2018 in 2020 by submitting the application to the Central Allowance Office for Retirement Assets via your Riester provider. Civil servants are only entitled to allowances if they allow their salary office to transfer data in writing.

You can read about how you can Riester and how much money you have to invest in our guide to the Riester pension.

This Riester pension suits you

  • Our provider recommendations for a Riester pension insurance: Hannoversche (tariff AV1) and Huk24 (tariffBRZ24)
  • Our provider recommendations for a Riester fund savings plan: DWS Toprente dynamics via online brokers, Deka Zukunftsplan Classic and Uniprofirente Select (fund: Uniglobal II)

  • Our provider recommendations for a residential Riester: Dr. Klein, Interhyp and Planethome

To the advisor

Should you adjust your retirement plan?

Old-age provision also has potential for tax savings - both for employees and for the self-employed.

Employer-funded pension

If you invest part of your wages in a company pension scheme, you canSave tax and social security free. As an employee, you save through your employer, and the contribution is deducted directly from your gross salary. This reduces the assessment base for both wage tax and social security; this will lower your employer's social security contributions.

If you have already concluded a company pension contract, you can still make an additional payment until the end of December, which will then be taken into account for tax purposes in 2020. As part of deferred compensation, you can save for direct insurance, a pension fund or a pension fund, for example. For 2020 you canSocial security free up to 3,312 euros save (2019: only up to 3,216 euros), that's 276 euros per month. Up to twice the amount, that is up to 6,624 euros, remains your deposit tax free.

In general, you have to take into account that the tax incentives will lead to the Company pensionin old age individually too tax is. Until you retire, however, you can benefit from a little less income tax and social security contributions every year.

Please note, however, that the employer and you will pay a little less into the statutory pension insurance in the event of a deferred payment, because your gross salary has been reduced by the contributions to the company pension. In addition, pensioners with statutory health insurance must have the full contribution to health and long-term care insurance pay if the company pension is over 159.25 euros per month. You can read about when it is worth converting your salary in our remuneration conversion guide.

Rürup pension insurance

For Self-employed the Rürup pension insurance is the only state-subsidized pension scheme. Employees could also use this form of state-subsidized old-age provision. However, there is a funding limit for pension expenses, which include the Rürup contributions. In 2020 this is 25,046 euros (2019: 24,305 euros).

The contributions to the statutory pension insurance paid by the employer as well as those paid by the employer must be included. Therefore, from a tax point of view, the Rürup pension is less worthwhile for employees than for the self-employed, who, unlike wage earners, do not receive employer subsidies for old-age provision.

In terms of tax, in 2020 pension expenses of up to 25,046 euros for individually assessed spouses will have a total of 50,092 euros for spouses assessed together. That would be the maximum amount that you can pay into an existing or new contract this year in order to benefit from it for tax purposes.

Of this maximum amount, 90 percent are deductible as special expenses for 2020, i.e. a maximum of 22,542 euros or 45,084 euros for jointly taxed persons. The tax-deductible part will increase to a full 100 percent by 2025.

For freelancers and Self-employedwho can usually only see in late autumn whether they can expect a high or rather low annual profit, paying into a Rürup contract at the end of the year is an important way of doing something for your own retirement provision and saving taxes at the same time. High earners benefit most from the special edition deduction.

An alternative to the Rürup pension may be voluntary contributions into the statutory pension insurance. As a self-employed person, you could pay in up to EUR 15,401 (a maximum of EUR 1,283.40 per month) for 2020. Additional payments for the previous year are still possible until the end of March.

Apply for a housing subsidy

Are you a building society saver? Then you shouldn't forget your home construction premium. You will receive the application annually from your building society.

Married couples with a taxable annual income of up to 51,200 euros (from 2021: 70,000 euros) and single persons with an income of up to 25,600 euros (from 2021: 35,000 euros) are entitled to this subsidy.

As a single person, you will receive a maximum of 45.06 euros a year as a home construction bonus; if you are married, you will receive double that amount (from 2021: 70 euros / 140 euros).

To receive the full home construction premium, you can pay into an existing building society loan agreement. The prerequisite for contracts since 2009 is that you use the building society savings amount for residential purposes. Specifically, this means that you buy, modernize or build a property with it.

However, this does not apply to building society savers who have not yet reached the age of 25. After seven years, you are free to use all of your saved credit, including your premiums.

You can retrospectively do one Request on the home construction premium up to two years after the savings year at your building society; this forwards it to your tax office. For example, you can secure the premium for 2018 until the end of 2020.

You can read many useful tips on home construction premiums and other funding opportunities for savers in our guide to asset-creating benefits.

Are your exemption orders still correct?

Much interest on savings is paid out at the end of the year. If you have not issued an exemption order, you will pay 25 percent withholding tax plus solidarity surcharge and possibly church tax on interest income. Once the final withholding tax has been paid, you have to wait until your next tax return to get your money back.

But if you give an exemption order, income from interest is up to the saver lump sum - 801 euros for singles and 1,602 euros for married couples - tax free.

Do you have accounts with different banks, you can split up your exemption order and make better use of the advantage. So you should check: How high is the exemption order at which financial institution and what investment income do you expect? Does the division make sense or should you split the tax-free amount differently?

You can Exemption order as often as you like in the current year to change - even on the last bank working day in December. If you want the changes as early as January, then you should change the exemption order by mid-December to be on the safe side. It is sufficient if you issue an exemption order for each financial institution for all accounts and custody accounts. For this you need your tax identification number.

Check non-assessment certificate

Low-wage earners, schoolchildren, students and pensioners often have incomes below the basic tax-free amount of 9,408 euros and therefore do not have to pay any income tax. If you belong to this group, you can apply for a non-assessment certificate from the tax office and present it to the bank. Then, as a rule, the investment income is exempt from withholding tax, even if it exceeds the saver lump sum of 801 euros. The NV certificate however, is at most valid for three years, then you have to apply for it again.