It is not mandatory to file a tax declaration in Germany (Steuererklärung) if you are a regular employee. However, according to tax experts in Germany, people who hand in their tax return do get roughly 1000 euros back per year.

That’s why even if you don’t have to file a tax declaration, it is worth investing a little bit of time, research, and effort into submitting your tax return.

It is mandatory to file taxes if one of the following applies:

• You receive other payments or substitute income benefits (Lohnersatzleistungen) that are more than 410 euros, such as parental allowance (Elterngeld).
• You have received extraordinary income, such as severance payments.
• You got divorced, and either you or your ex-partner got remarried in the same year.
• You have several employers at the same time (not counting mini-jobs).
• You have received income in another country, for example, the year of your relocation or rent payments from a property.
• You are married, and you or your partner have opted for tax class III or V.
• You have received an allowance (Freibetrag) from the local tax office.
• You have been in Kurzarbeit.

For freelancers and self-employed, it is mandatory to submit a yearly tax declaration.

Every employee in Germany has the right to declare expenses worth 1,000 euros, whether they actually happened or not. However, there is misleading information on some websites, which tell you that you can claim those 1,000 euros via your tax return. That is incorrect.

To benefit from this 1,000 euros reduction of taxable income as an employee (Arbeitnehmer-Pauschbetrag), you don’t need to file a tax declaration, as it usually gets considered by your employer when subtracting your wage tax on your payslip.

However, many employees have more than 1,000 euros in work-related expenses per year, which you should declare to reduce your taxable income, and thus actually get money back.

Credit: Content by Anshul Srivastava
DISCLAIMER: The information provided here is for general informational purposes only and does not constitute professional tax, legal, or financial advice. I am not a licensed tax consultant under German law. For tailored advice specific to your situation, please contact a certified Steuerberater or tax advisor.