Sign in to follow this  
Followers 0

Where in tax return to mention Insolvenzgeld?

7 posts in this topic

Posted

Hello everyone,

Being the first time for filing returns in Germany, this site has provided quite an adequate information. I would first thank PandaMunich, Yorkshire, and all others for helping out anyone with their knowledge on tax returns. Kudos to you all.. Saying all this, I also have a query and seek some advice and information.

I joined my first job in Germany in March 2012 after completing my study course. Unfortunately, the company went bankrupt in my first month of the job. I worked in the same company till May 2012 (3 months notice for insolvency) after which it closed down. For these 3 months, the salary was paid as Insolvenzgeld from the Government. Since I worked only for 3 months, of course I was not entitled for any unemployment benefits. Luckily I found another job in August 2012. These are my queries before I approach any Steuerberater or filing my returns on my own.

1) Does the Government paying Insolvenzgeld have any influence when they calculate the refunds of the tax payment?

2) Does me being unemployed for the month of June and July entitle me for tax claims? If yes, where should these be mentioned?

3) I had loan repayments for my education in my home country. Can these be reported for any claims?

Since I am filing my returns for the first time, many of my colleagues are suggesting, its too risky doing returns on my own. Can you please suggest lohnsteuerhilfeverein in Esslingen or Kirchheim unter teck?

Thanks and regards,

Sesh

0

Share this post


Link to post
Share on other sites

Posted

1) Does the Government paying Insolvenzgeld have any influence when they calculate the refunds of the tax payment?

Yes, it will raise the tax rate that you will pay on your other taxable income.

You have to mention the Insolvenzgeld in line 28 of your Anlage N.

By the way, it also says so in the yellow section of the TT Elster wiki.

2) Does me being unemployed for the month of June and July entitle me for tax claims? If yes, where should these be mentioned?

You should mention the months that you didn't work in Anlage N, line 30, e.g.:

  • Juni und Juli: arbeitslos ohne Anspruch auf Arbeitslosengeld

However, they only entitle you to refunds in the sense that since you didn't have any income those months, this means that your yearly total taxable income will be less than was initially assumed (for the monthly salary deductions they assumed that you you will have a yearly income of 12 x monthly gross salary).

3) I had loan repayments for my education in my home country. Can these be reported for any claims?

Yes, depending on whether it was for your first university degree (e.g. Bachelor) or your second (second Bachelor or a Master degree), you claim in different places in your tax return.

For details, please see the middle of post 379 in Filing a tax return.

0

Share this post


Link to post
Share on other sites

Posted

Thank you Panda Munich for your inputs.

Since the insolvency was not wrong on my part, it does not seem fair for the tax to be increased for me, as I also lost my job after insolvency and was unemployed for a certain time after that. But have to accept the reality... Any idea how much more I will be taxed as I am already being taxed high since I am in Steuerklasse I. Also for the insolvency money paid, taxes were deducted normally.. So still should I pay higher taxes?

The educational loan was for my Master degree. So do I have to submit any proof for the payments made?

-1

Share this post


Link to post
Share on other sites

Posted

Insolvenzgeld is tax free, see here.

If they deducted taxes, they made a mistake.

Anyway, it is a bit late to correct this now.

If you have a Lohnsteuerbescheinigung about the Insolvenzgeld, simply declare it together in a sum with your normal salary of that year, and not separately as Insolvenzgeld.

Of course you have to submit proof of your tuition fees and of the payments.

0

Share this post


Link to post
Share on other sites

Posted

Ok I will add them as a normal salary..

As for the educational loan part, the tuition fee for the course was very less, infact the loan was for funding the stay, fees, and other expenses for whole amount of time of study here... also when I made payments back, I just have transferred money to the bank back home. So can this still be considered for tax refunds or it does not qualify as "werbungskosten" ..

0

Share this post


Link to post
Share on other sites

Posted

Then you can only claim for the interest on that whole loan, plus for the part of the repayment of the loan that applies only to the tuition fees.

Example:

Interest in 2012 on total loan: 500€

Part of repayment 2012 pertaining to tuition: 100€

___________________________________________________

Claim in Anlage N, line 47: 600€

0

Share this post


Link to post
Share on other sites

Posted

Thank you PandaMunich.. I hope I fill the tax forms right. :)

0

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0