Looking forward to how to do taxes in Germany. If you live or planning to live in Germany, you will experience a high level of taxation.
Germany tax is high and according to the German Government, “Tax payment is used in the construction of Roads, Hospital, Schools, payment of civil servants and Politicians”
The German taxes depends on the level of the individual, tax for singles and married couples are different.
The government collects tax on behalf of Churches as charitable means. I have a post about how you can avoid the Church tax in Germany.
Some people ignorantly when checking their payslip or whilst shopping will discover over 40% of reduction for taxation. Why will the German government delve into people pockets like that?
We found that the German government relies on taxes as the main source of income to the government.
Each state is entitled to income tax and taxes are managed by different tax offices around the city.
Things to Know about taxes in Germany
If you live in Germany then you already know the four factors that really influence the amount of tax you pay or increase on German tax.
The four things you need to know about the Germany tax are;
- German tax depends on your marital status
- The total number of children
- Whether you pay church tax (see post on how to avoid church tax in Germany)
- Health insurance coverage (public or private)
Tax Class in Germany
In Germany, there are six different tax code which classified people to each category.
- Tax class #1 – Unmarried people: singles, divorcees and widowers are in this category.
- Class #2 – Single Parents
- Class #3 – Married couples that one partner earns more than the second partner.
- Tax class #4 – Married couples were both partners earn a similar amount of income.
- Class #5 – Married couples that one partner earns less than the second partner.
- Class #6 – Married couples, singles, divorcees, and widowers who occupied more than one job.
If you’re living in Germany or planning to move to Germany to work, then how to do taxes will be very useful to you.
How to do taxes in Germany
Let me introduce you to the most important and useful website you can use to do taxes in Germany.
This website is germantaxes.de
Germantaxes.de is a reliable online tax declaration for people living in Germany and is approved by the German fiscal authorities.
The good news is that the website is written in English and there will be no struggle to translate it.
This website serves as tax declaration and tax returns for people who feel they’re overcharged and also provides financial advice on how to save money in Germany.
If you use the website carefully and depend on your income return then you will receive the overcharge taxes to your bank account.
Using this website will help you do taxes in Germany and avoid the service of a tax accountant who might charge you hundreds of Euros to do it for you.
Know that your taxes will be processed online by them and your tax office. Processing and accessing the online tax declaration is free but you will be required to pay 34,90€ as a service fee on file return.
Now, let’s begin with the process of how to do taxes in Germany.
You will be required to sign up and start the process
This is where you will create an account with germantaxes.de
Type in your email, either Gmail, yahoo mail or any other mail, followed by your password.
Your password should be at least 8 characters long with letters and numbers.
Then, click on create a free account to create an account with germantaxes.de
You’ll be redirected to the next page and what is expected from you. Please read it carefully and follow the step-to-step guide from the website.
After you’ve read the steps-to-steps guide then click on Select Tax Year to visit the next page.
Choose the year for your tax returns, do this carefully and select the one that best suits your choice of taxes.
According to the website, your information will be needed on all those 7 sections,
Supply the information in accordance with your legal documents and the same as on employee tax statements.
As you fill in your information, observed the Refund at the top of the page, you will notice the total amount to be refunded to you.
Hope this article helps you with how to do taxes in Germany.
Share it with others on Social media and we’ll love to hear what you think about germantaxes.de; your experience will help others!