My German Tax Return E-Book

• Herausgeber: Akademische Arbeitsgemeinschaft Verlagsgesellschaft
• Kategorie: Fachliteratur
• Sprache: Englisch

Veröffentlichungsjahr: 2026

Beschreibung

This is a tax guide for all employed persons who want or need to file an income tax return (or: tax declaration) in Germany but do not speak much German. It explains the basics of German tax law and guides you through the most important questions and tax forms: - Where do I file an income tax return (Steuererklärung)? - What deadlines do I need to know regarding my tax return? - Which tax office (Finanzamt) do I have to submit my tax return to? - May I send a German tax return by email? - Which expenses are deductible in a tax return? - Are there lump sums (Pauschbeträge) or do I have to calculate every little bit? - What do all these weird words in the tax forms mean? - What do I need may wage tax certificate (Lohnsteuerbescheinigung) for? - What do tax payers mean when they talk about the "Mantelbogen"? - What the heck is "Elster", if not a magpie? - How do I fill in the Annex N? - Is there a chance for a tax refund? - …And so much more! It's so much easier than you think! Even for native speakers, German tax law sometimes seems rather incomprehensible. But then, most of the time, it's not as complicated as you may have feared! Many tax forms are actually quite self-explanatory. Whether you do your tax return yourself or seek professional advice: This guide about filing a tax return in Germany will help you! Though you may speak little or no German, you can basically do your tax return yourself. But even if you use the services of a tax advisor (Steuerberater) or go to an income tax help association (Lohnsteuerhilfeverein), the following applies: only if you know the basics of German tax law you can point out important facts to your advisor that may be unusual for other taxpayers.

Leseprobe

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Inhaltsübersicht

1   Vorwort

2   Tax returns: The Basics

2.1   Who has to file a tax return?

2.2   What is the tax identification number?

2.3   What belongs in a tax return?

2.4   How do I prepare a tax return?

2.5   How do I file my tax return?

2.5.1    Submission by post

2.5.2    Sending electronically using ELSTER

2.5.3   Submitting your tax return to the tax office yourself

2.6   By when do I have to submit my tax return?

2.7   Which tax office do I submit my tax return to?

2.8   Tax classes and types of assessment

2.8.1   Tax classes

2.8.2   Types of assessment

2.9   Tax tips: Where do tax lump sums apply and where do I need proof?

2.9.1   Where the tax office does not look so closely

2.9.2   The tax office takes a closer look here

3   Fill-in Assistance for the most important forms

3.1   What is the »eDaten« (»eData«) all about?

3.2   Mantelbogen, Hauptvordruck ESt 1 A (Covering sheet, main form ESt 1 A)

3.3   Anlage Sonderausgaben (Special Expenses Annex)

3.3.1   Which costs are deductible?

3.3.2   How to fill in the Special Expenses Annex

3.4   Anlage Außergewöhnliche Belastungen (Extraordinary Expenses Annex)

3.4.1   What are extraordinary expenses?

3.4.2   How to fill in the Extraordinary Expenses Annex

3.5   Anlage Haushaltsnahe Aufwendungen (Annex for Household-related Expenses)

3.5.1   What are household-related expenses?

3.5.2   What is supported?

3.5.3   How to fill in the Annex for Houshold-related expenses

3.6   Anlage N (Annex N)

3.6.1   What are income-related expenses (Werbungskosten)?

3.6.2   These income-related expenses could be particularly interesting for you

3.6.3   How to fill in Annex N

3.7   Anlage Vorsorgeaufwand (Pension Expenses Annex)

3.7.1   Which contributions are deductible?

3.7.2   How to fill in the Pension Expenses Annex

3.8   Anlage Kind (Annex Child)

3.9   Application for child benefit

4   After the tax return: Am I really done now?

4.1   How long do you have to check a tax assessment notice?

4.2   Attention: Several notices on one paper

4.3   Objection: Form, deadline and costs

4.3.1   In which cases should an objection be filed?

4.3.2   What is a final tax assessment notice?

4.3.3   What is a provisional tax assessment?

5   Tax lexicon: Important terms you should know

My German Tax Return: A step-by-step guide to file your taxes in Germany

1   Vorwort

Dear readers,

We have been dealing with tax law for a long time – and at some point we noticed that the German tax forms are not available in English. Why is that? Perhaps, it's too tricky to translate them: What if a mistake happened?

This is where we would like to step in and help you with this guide. The fact that you are willing to deal with German tax law is admirable. Even for native speakers, it sometimes seems completely incomprehensible. But then, most of the time, it's not as complicated as you may have feared! Many forms are actually quite self-explanatory.

Even though you speak little or no German, you can basically do your tax return yourself. Even if you use the services of a tax advisor (Steuerberater) or go to an income tax help association (Lohnsteuerhilfeverein), knowledge of some basics can go a long way in telling your advisor about facts that might be particular to your case, for example financial support for family members abroad.

We have based this guide on the most important tax forms for the 2020 tax return, which will be prepared in 2021. This means that when you read this guide in later years, the forms may have changed. That is why we included the original German text of the individual forms – so you can compare whether you are actually in the right place. You can download the current forms for free at www.steuertipps.de.

Since this is the first time we’re doing this your feedback is invaluable. Let us know if this helped you. Write to us at [email protected] about what helped you and what you missed or take our short survey. And if you feel comfortable with this kind of information, we will also consider translating other guides into English, which will then go into more detail.

We wish you all the best with your German tax return.

Your Steuertipps editorial team

2   Tax returns: The Basics

2.1   Who has to file a tax return?

The »unlimited income tax liability« is regulated in § 1 para. 1 of the Income Tax Act (Einkommensteuergesetz, or short: EStG).

Only natural persons are subject to unlimited income tax liability.

A person is subject to unlimited tax liability in Germany, i.e. with all domestic and foreign income, if he or she has his or her residence or habitual abode in Germany.

This means in detail:

»Natural persons« are all living people. Legal capacity, age, sex, marital status and nationality are irrelevant.

»Domestic« is within the Federal Republic of Germany.

Your »residence« is where you regularly use an accommodation yourself and also maintain it in the future. It is necessary that the accommodation is available to you at all times – whenever you wish – as a place to stay. There must be at least one fixed room suitable for living in, with furniture, heating and cooking facilities. This can also be a furnished room.

!

Tipp: Multiple residences are possible, including residences within Germany and abroad at the same time. For unlimited income tax liability, a residence in Germany is decisive.

A »habitual abode« is where someone chooses to stay not only temporarily, but without establishing a residence. A stay of more than six months without a long-term interruption leads to a habitual residence and thus also to unlimited tax liability from the beginning.

»Unrestricted income tax liability« means that you are liable to pay tax in Germany with your global income, i.e. with all domestic and foreign income.

!

Tipp: This principle of taxing world income raises problems if both the German state in which you reside as a taxpayer and the foreign state in which you earn income want to tax the same (foreign) income. Residence taxation in Germany and deduction of tax at source abroad can then lead to double taxation.

German income tax law provides for the following regulations to mitigate or avoid double taxation of positive foreign income in the case of unlimited tax liability:

in the case of taxation of the foreign income in Germany, crediting or deduction of the foreign tax (credit method);

in the case of exemption from taxation in Germany, inclusion of the foreign income in the progression proviso (exemption method).

Whether Germany (first case) or the other country (second case) has the right to taxation is regulated with most countries through a double taxation agreement (DTA).

You can read and download all double taxation agreements that Germany has entered into with other countries on the website of the Federal Ministry of Finance.

2.2   What is the tax identification number?

Since 2008, everyone who registered a residence in Germany was given a tax identification number (Steuer-Identifikationsnummer). However, this did not always go entirely smoothly - sometimes numbers were assigned twice or someone was forgotten.

Anyone who registers a residence in Germany after 2007 receives a tax identification number as soon as the registration office transmits the data to the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt). If the tax identification number does not arrive within three months, you can contact the BZSt.

Parents receive the tax identification number for their (newborn) children after the registration office (Meldebehörde) forwards the data to the BZSt.

If you do not find a letter with your tax identification number in your documents, contact the Federal Central Tax Office. This also applies if you have lost the letter.

There are three ways to request your tax identification number:

Fill out the form Notification of tax identification number(Formular »Mitteilung der Steueridentifikationsnummer«) on the website of the Federal Central Tax Office.

Send an e-mail to [email protected] and ask to be informed (again) of your tax identification number.

Write to Bundeszentralamt für Steuern, Referat St II 3, 53221 Bonn.

You must send the following information in order to have your tax ID (re)issued:

Surname

First name

Your address

Place of birth

Date of birth

For data protection reasons, the tax identification number is only sent by post and never by e-mail.

2.3   What belongs in a tax return?

There are some important tax return forms whose names you should know – even if you use software to fill them out and the names of the forms are probably not mentioned there at all.

!

Tipp: In the chapter »Fill in Assistance« we will explain in detail how to fill in the most important forms.

All taxpayers with unlimited tax liability, i.e. taxpayers with residence and income in Germany, must submit the »covering sheet«(Mantelbogen or officially: Hauptvordruck ESt 1 A). In the covering sheet you will be asked for, for example, your name, address, occupation, bank account details, religious affiliation, etc.

If you have to pay church tax in Germany, you have to submit the »Special Expenses Annex«(Anlage Sonderausgaben). Donations are also entered here.

You need the »Extraordinary Expenses Annex«(Anlage Außergewöhnliche Belastungen) if you have a disability or if you have incurred costs due to an illness.

In the »Annex for Household-related Expenses«(Anlage haushaltsnahe Aufwendungen) you enter, for example, expenses for craftsmen or household help.

Employed persons must also submit the »Annex N«(Anlage N). Annex N contains salary and the income-related expenses (for example, the commuter allowance/commuting allowance for the way to work, costs for a study or information on a double household).

In the »Pension Expenses Annex«(Anlage Vorsorgeaufwand) you enter all insurance contributions for post retirement provision. In tax law, this is considered to be »special expenses«. In addition to statutory social security contributions (pension, unemployment, health and long-term care insurance), the following contributions can be entered:

private health and long-term care insurance,

private employment and occupational disability insurance,

private accident and liability insurance.

You must complete the »foreign income Annex«(Anlage AUS) for foreign investment income if you earn investment income abroad. You must also submit the foreign income Annex if there is a double taxation agreement (Doppelbesteuerungsabkommen or short: DBA) with the country concerned.

!

Tipp: You do not have to submit receipts, proof of payment or proof of donations along with your tax return. However, it is possible that the tax office will request them. Therefore, keep all documents in a safe place, especially if you claim high costs in your tax return.

2.4   How do I prepare a tax return?

Individuals and employed persons are still allowed to fill out tax return forms by hand. You can get the forms from the tax office (Finanzamt).

However, most taxpayers now use software to fill out the forms. Software has the advantage that it checks the entries for plausibility and provides tips on which additional costs can still be declared.

!

Tipp: Unfortunately, you cannot simply fill out tax details for several years in the same form – because tax law changes frequently. There are new forms and also new software every year. There is no tax software with »cross-year« updates.

You can enter the data on your computer with the help of a special tax software and then print everything out on normal paper. But it also works electronically. That is the electronic dispatch via »ELSTER«, which stands for ELektronische STeuerERklärung (electronic tax return): After filling in the data on your computer using a software, your forms can be electronically dispatched to the Federal Tax Office via »ELSTER«, which is included in all tax softwares.

!

Tipp: Make sure that the tax return you plan to send in printed document format is easy to read and do not skimp too much on the print quality. The tax office may reject an illegible tax return. The tax return is then deemed as not submitted! This is particularly annoying if deadlines are missed as a result.

2.5   How do I file my tax return?

There are three ways to submit your tax return to the tax office:

by post;

electronically;

submitting in person at the tax office or dropping it in the letterbox there.

Sending the income tax return by e-mail or fax is not permitted.

Sending electronically using ELSTER

If you prepare your tax return using a software, you can send it directly and digitally from the software itself via the Internet to the tax office. This procedure is called ELSTER, which stands for ELektronische STeuerERklärung (electronic tax return).

2.5.1    Submission by post

Fill out the forms (with the appropriate software or by hand), sign and send the tax return to the tax office. A simple letter is sufficient; it does not have to be a registered letter. This is recommended only if you need a confirmation of receipt to meet a deadline.

2.5.2    Sending electronically using ELSTER

If you prepare your tax return using a software, you can send it directly and digitally from the software itself via the Internet to the tax office. This procedure is called ELSTER, which stands for ELektronische STeuerERklärung (electronic tax return).

For this electronic dispatch, you can choose within the software whether you want to send the tax return with or without an electronic signature.

Sending without an electronic signature

With this dispatch type, the tax return is transmitted directly to the tax office. If the transmission was successful, a »compressed tax return« is printed out automatically. You must sign this and submit it to the tax office.

Important for meeting deadlines: The tax return is deemed to as submitted only when the tax office receives the compressed tax return, not when it is sent electronically.

Sending with an electronic signature

If you also want to sign your electronic tax return electronically (electronic certificate), you must register on the tax authorities' Internet portal (https://www.elsteronline.de/eportal/). Register in good time, because the procedure takes a few days.

The advantage of electronic signature/certificate is that there is no longer a need for submitting an additional compressed tax return. With successful transmission, the tax return is effectively submitted.

There are three variants for sending with electronic signature:

»ELSTER-Basis« is free of charge. In this procedure, you send your tax return with a personalised software key. This certificate is saved as a file on your computer.

If you want to submit your tax return with »ELSTER-Spezial«, you have to buy a special USB stick – the »ELSTER-Stick«. This contains the software of the tax authorities, for which you will receive a PIN. »ELSTER-Spezial« offers more security and mobility.

If you opt for »ELSTER-Plus«, you can also view your tax accounts directly. For »ELSTER-Plus« you need a signature card and a chip card reader, which you have to buy yourself; this is the most expensive variant of the electronic signature.

Our recommendation: If you only want to sign electronically, the free »ELSTER-Basis« procedure is certainly the first sensible step. If you use several computers for tax purposes, the »ELSTER stick« can be quite practical.

2.5.3   Submitting your tax return to the tax office yourself

After filling out the forms by hand or with a software, print them out if necessary, sign them and then make your way to the tax office: this is the preferred method if you are going to the tax office anyway or if you want to be on the safe side and make sure that your tax return arrives (e.g. when the deadline for submission expires).

!

Tipp: Make sure you get to the right mailbox! Often the tax office, the tax court and other authorities are located in the same building. In larger cities, there are sometimes two tax offices in the same building. If the deadline for filing your tax return is approaching, dropping it in the wrong letterbox could lead to it being forwarded – but by the time it reaches the right recipient, the deadline may already have passed.

2.6   By when do I have to submit my tax return?

You have until the 31 July of the following year to submit your tax return. The tax return for 2020 must therefore be at the tax office by 31.7.2021.

If 31 July is a Sunday or public holiday, you have until the next working day.

In the past, most tax offices did not mind if the tax return arrived a few days or a week later. Now, however, you have to expect penalties if you don't report the delay in advance – at least 25 euros per month or part thereof the delay.

!

Tipp: Therefore, apply for an extension of the deadline in good time if you need more time for your tax return. Don't wait until the last day!

You can download a sample letter for the application for an extension of the deadline here free of charge.

If you do not do your tax return yourself but take help from a tax advisor or an income tax help association, you have longer time to submit it: until 28 February of the year after next. The tax return for 2020 does not have to be submitted to the tax office until 28 February 2022.

!

Tipp: Not filing a tax return in order to avoid an additional payment is absolutely not a solution.

On the one hand, it is unlikely that the tax office will forget about you.

On the other hand, there is a risk of sanctions if you do not file a tax return that you are obliged to file until years later: The tax office can then demand a late surcharge or charge interest on arrears. And that can be really expensive!

2.7   Which tax office do I submit my tax return to?

Your tax return needs to be submitted to the tax office of the district you are a resident of at the time of submission. This is why it is also called the »tax office of residence« (Wohnsitzfinanzamt).

If you have several residences, it depends on whether you are married or not:

In the case of married persons, the residence where the family mainly resides is decisive – regardless of whether joint or single assessment is chosen (we will explain what this is in the next chapter).

In the case of non-married persons, the residence where they mainly reside at counts. This can also be the secondary residence!

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Tipp: Are you looking for the address of your tax office? Simply enter your place of residence or your postcode in the search field of the free tax office search at steuertipps.de!