Claiming tax deductions

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only if you could prove you never use it to travel privately (this is purely my guess, but since it is the rule applying to all other things, I'm pretty sure that will be the case).

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If you were German, and needed a NEW passport to travel on a particular business trip, then yes, maybe (i.e. it's worth trying). As a foreigner (I presume), then you need a passport to actually be here, so as a requirement for your private life, it's not deductible.

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Hello,

I made my 2012 Steuererklarung through an advisor of the LHV...I presented her a lot of receipts, and accepted most of them, but she told me that I cannot claim

- 3rd party liability insurance

- Dread diseases insurance (with a German company)

- Accident insurance (with a UK company)

- Cost for teeth cleaning (not covered by my public health insurance)

- Cost for eye exams not covered by my public health insurance

- Praxisgebuhren

- Costs of drugs (some of them for a chronic disease that I have)

 

So she didn't even include those receipts/Rechnungen in my Steuererklatung...was she right? If not, is there a way to "amend" my already submitted Steuererklatung for 2012? I'm still waiting for the response from the Finanzamt.

 

Finally...I payed ~20 Euros of taxes from my Tagesgeld account last year, because the accrued interests at the end of the year where a bit more than 801 Euros, but I forgot to include this in the Steuererklarung...would have this made a big difference?

 

Thanks a lot

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- 3rd party liability insurance

- Dread diseases insurance (with a German company)

- Accident insurance (with a UK company)

 

Those are part of the Vorsorgaufwendungen.

 

However, as an employee you are only allowed to claim up to 1,900€ a year for Vorsorgaufwendungen, and most people already max out this amount just with their health&nursing insurance (in fact, if your health&nursing insurance costs more than 1,900€ you are allowed to claim that exact amount even if it is above 1,900€, don't try to understand it).

So most people have no "space" left for other eligible insurances like those above.

 

In your case, you probably exceeded the 1,900€ limit just with your health&nursing insurance, so she was right not to bother with the other insurances.

 

 

- Cost for teeth cleaning (not covered by my public health insurance)

- Cost for eye exams not covered by my public health insurance

- Praxisgebuhren

- Costs of drugs (some of them for a chronic disease that I have)

 

Those are außergewöhnliche Belastungen (= extraordinary burdens), and based on your yearly gross income, marital status and number of children, you have to bear the first xxx€ of those costs yourself.

 

For example, if you are single, no kids, and have a gross income of 50,000€, then you have to bear the first 3,000€ (= 6% of 50,000€) of these costs yourself, and only amounts exceeding those 3,000€ will be deductions in your tax return.

You can look up these percentages in the table here.

 

So maybe she didn't use the bills and invoices because they only added up to less than the amount you are supposed to bear yourself, i.e. the amount which the German tax department says poses no extraordinary burden to you.

 

 

Finally...I payed ~20 Euros of taxes from my Tagesgeld account last year, because the accrued interests at the end of the year where a bit more than 801 Euros, but I forgot to include this in the Steuererklarung...would have this made a big difference?

 

No.

 



  • If your personal tax rate is above 25% it wouldn't have made any difference, since you only pay maximum 25% income tax (= Abgeltungsteuer) on capital interest.
  • If your personal tax rate is less than 25% than you would have gotten back the difference in tax rates (between 25% and your own personal, lower tax rate) on those ca. 80€ (= 20€/25% = 20/0.25), which would have added up to peanuts.
    The most you could have got back would have been those 20€, but that's for the extreme case that your total yearly income in 2012 was below 8,004€.

 

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Those are part of the Vorsorgaufwendungen.

 

However, as an employee you are only allowed to claim up to 1,900€ a year for Vorsorgaufwendungen, and most people already max out this amount just with their health&nursing insurance (in fact, if your health&nursing insurance costs more than 1,900€ you are allowed to claim that exact amount even if it is above 1,900€, don't try to understand it).

So most people have no "space" left for other eligible insurances like those above.

 

In your case, you probably exceeded the 1,900€ limit just with your health&nursing insurance, so she was right not to bother with the other insurances.

 

Those are außergewöhnliche Belastungen (= extraordinary burdens), and based on your yearly gross income, marital status and number of children, you have to bear the first xxx€ of those costs yourself.

 

For example, if you are single, no kids, and have a gross income of 50,000€, then you have to bear the first 3,000€ (= 6% of 50,000€) of these costs yourself, and only amounts exceeding those 3,000€ will be deductions in your tax return.

You can look up these percentages in the table here.

 

So maybe she didn't use the bills and invoices because they only added up to less than the amount you are supposed to bear yourself, i.e. the amount which the German tax department says poses no extraordinary burden to you.

 

No.

 



  • If your personal tax rate is above 25% it wouldn't have made any difference, since you only pay maximum 25% income tax (= Abgeltungsteuer) on capital interest.
  • If your personal tax rate is less than 25% than you would have gotten back the difference in tax rates (between 25% and your own personal, lower tax rate) on those 20€, which would have added up to peanuts.
    The most you could have got back would have been those 20€, but that's for the extreme case that your total yearly income in 2012 was below 8,004€.

 

 

Thanks a lot for the clarifications!

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If the the moving period (first 3 months in Germany) are spread over two fiscal years - in which year you can take the claim of 1.374 EURO tax deduction (married)? Can you choose it yourself or is there a rule for this?

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I'm aware of that this question doesn't really fit into this thread, but there was no other thread it fits in and it's about taxes anyway:

 

Does anybody have experience with how income derived from a master limited partnership (under US-law, but not necessarily residing in the US)is taxed in Germany? On my broker statement those distributions are treated as dividends, but this is wrong. As far as I know those distributions are free of German taxes and only subject to the Progressionsvorbehalt (i. e. they might take you into another tax bracket). Is this correct?

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...there was no other thread it fits in...

 

Really? How about this one?

 

 

I'd like to ask a different question related to taxation of US-sourced proceeds in Germany. Will distributions of a US-based master limited partnership be taxed for German residents? Or will they only be taxed in the US and are subject only to the Progressionsvorbehalt in Germany (as I read here, second link from below on the the left, but am struggling to believe)? And what about the distributions of such master limited partnerships which are based e. g. in the Bermudas? Will they only be taxed in the Bermudas (where the tax rate for such distributions is zero)?

 

 

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If the the moving period (first 3 months in Germany) are spread over two fiscal years - in which year you can take the claim of 1.374 EURO tax deduction (married)? Can you choose it yourself or is there a rule for this?

 

There is no moving period, there is only a single moving date, the date you spent the first night in your new flat.

You claim in the year that this date was.

 

The 90 days are in the category "doppelte Haushaltsführung" (which starts after the moving date), not in the category "moving costs".

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Hello Everyone,

 

I had a query regarding claiming tax deductions.

I was a student in Germany from 2009 to 2011, during which i paid 15,600 €(Read fifteen thousand six hundred euros) towards my university tuition fees in Germany. Since I got a job last year, I want to know if I can claim it or not. My gross income from may 2012 to may 2013 is 36000€.

I also wanted to know when can one claim tax deductions (is it once in a year during May?)

 

Thanks for your help.

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Was it for a Bachelor or a Master degree?

 

If it was for a Bachelor degree and you paid it out of your own pocket (i.e. no loan) and you didn't have any taxable income during those years then you cannot claim for it, sorry.

These would be Sonderausgaben, and you are not allowed to create a loss that you then carry forward to a later year because of Sonderausgaben.

If you took out a loan and are only repaying the Bachelor tuition from 2012 then you can claim in the 2012 tax return (and in all further returns until you have repaid it).

 

On the other hand, if it was a Master degree then they were Werbungskosten which are allowed to create a loss which can be carried forward.

So you would do your tax returns for 2009, 2010 and 2011, state a loss in each tax return from the tuition fees, and carry the loss forward to 2012 when the accumulated loss of 15,600€ would reduce your taxable income in 2012.

If you took out a loan and are only repaying the Master tuition from 2012 then you can claim in the 2012 tax return (and in all further returns until you have repaid it).

 

Since you are an employee who is not obliged to submit a tax return, you can submit your tax return any time you like.

But I would hurry up with it, since the Finanzamt will start making problems if you submit the 2009 tax return later than 31.12.2013. You can force them to accept a submission for 2009 until 2016 (i.e. up to 7 years later), but that would entail quoting high court decisions at them.

 

The tax year in Germany is the calendar year, i.e. for 2009 you would submit a tax return covering 1. January to 31. December 2009.

You can find instructions for filling in the tax forms for the tax return in the TT Elster wiki, yellow section.

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There is no moving period, there is only a single moving date, the date you spent the first night in your new flat.

You claim in the year that this date was.

 

The 90 days are in the category "doppelte Haushaltsführung" (which starts after the moving date), not in the category "moving costs".

 

Dear Panda, many thanks as always for your generous support.

However, I am not sure, if I got it right. I came to Germany in mid-November 2012 (tax class 1) and moved to my 'new' apartment on 01.01.2013 (tax class 3). As tax class 3 deduction is better (~1.370 EUR) - I was wondering whether you are referring to 'new' apartment (moved in Jan) or the 'temporary accommodation' in Nov/Dec'2012?

 

Cheers

Kapil

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With "new flat" I mean your first flat/hostel/hotel in Germany, as opposed to your "old flat" outside Germany.

 

If you are eligible for doppelte Haushaltsführung, then the 90 days start from the day you first moved to Germany for your job, i.e. mid-November, so you would have around 45 days à 24€ in your 2012 tax return, and the rest in your 2013 tax return.

 

Your second move isn't tax-deductible at all, unless you moved so that you could be at least 1 hour closer to your job.

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Can we claim deductions for goods (clothing, household items) given to a charity collection . If so, what sort of documentation is required? Thanks so much!

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Only if they give you a proper Spendenquittung, but the charities only tend to issue those if you give them money.

But if get them to issue you one, with a value (the used value, not the original price!) on it, then yes.

 

Also, don't forget to attach to your tax return the original invoice (if you still have it) for the stuff that you gave to charity,just so that they see that you didn't just think up the value.

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Tricky question following:

Currently working in Germany and being payed in Germany.

Starting 15.01.2014 until 15.12.2014 will be working in Japan in BT, payed still in Germany but also receiving allowances in Japan.

What will this mean for my taxes deductions for 2014, will I be paing taxes as for Germany, Japan or both?

My understanding until now is that the company will cover any additional taxes related to staying in Germany.

Just talked to some tax consultant and he asked if I will rennounce my residence in Germany, and I said yes.

 

Also what do you know about Deloitte, how are their fees for private customers? what feedback do you have abou them?

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Since you will be there for longer than 183 days (and already know this from the start), you will have to pay income tax on your salary to Japan, see article 15 (also in English) of the double taxation agreement between Germany and Japan.

 

Regarding social security, since there is a social security treaty (= Sozialversicherungsabkommen) between Germany and Japan and since you will be posted (= seconded = entsandt) to Japan for less than 60 months, you will continue to pay German social security contributions.

For details, see the section "Entsendung" on page 6 of this official brochure.

 

You will have to ask you employer what kind of health insurance you will have in Japan.

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Thank you for the links! You are extremely helpful as always.

I forgot to add that I am a Romanian citizen, working in Germany, but I will deregister from my apartment in Germany when I will leave to Japan.

Does this change the situation in any way?

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