Germans and taxes: what has changed during the pandemic | Study and work in Germany

“I’ll be doing my tax return this weekend,” is akin to warning you not to bother for this time. The Germans and taxes are generally a pretty scrupulous topic. Not everyone can understand the jungle of tax rates and indulgences, and then a tax consultant comes to the rescue. If he is involved in its preparation, then the deadlines for submitting the tax return are shifted.

28 million people filed their tax return online

In 2020, which the Germans have spent in the fight against the coronavirus pandemic, there has been one important change. A record number of taxpayers have used online services to file their tax returns. According to the Bitkom Alliance of Digital Economy Enterprises, 28 million Germans have done this electronically. This is almost 20 percent more than last year. For these purposes, the Germans use the Elster online portal. And, as experts predict, this number will grow even more, as many Germans have used the German Kurzarbeit model. Its essence is that the state took upon itself the payment of salaries to the employees of the enterprise for the period when the employer, due to the crisis situation, was temporarily unable to do it himself. Employees must now complete this period of time and file the appropriate tax return.

Tax bonuses

During the pandemic, additional incentives were created for the Germans. Now you can take advantage of the tax breaks that are provided to those who worked from home – Homeoffice-Pauschale. You can write off a certain amount: 5 euros per day, but the maximum is 600 euros per year. Such a tax bonus is due not only to those who equipped a home office, but also to those who shared the kitchen table with their household members and worked far from a work environment. And these are not the only tax breaks that are envisaged in the pandemic. Many working Germans who travel to the office by train have BahnCard 50 or 100. They allow you to buy train tickets at a bargain price – anytime and without waiting for special offers. If the employee mainly worked from home and could not use the card for its intended purpose, then he can write off all the costs associated with its purchase.

It is not so easy to understand all the intricacies of tax policy, but the Germans will have additional time for this. It will be possible to submit the declaration for 2020 three months later – until the end of October 2021. And for those who use the services of a consultant, even later.

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Author: Marina Borisova