First and New Things - Tax declaration for 2023: They must keep this in mind
## Table of Contents
- When is the deadline for filing the tax declaration 2023?
- Can I extend the deadline?
- Who is required to file a tax declaration?
- How can I file the tax declaration best?
- What's new in tax year 2023?
- What changes regarding Home Office?
The deadline for submitting the tax declaration for the year 2023 is still within reach. However, those who cannot expect a timely tax refund may start preparing. For tax year 2023, some tax reliefs apply, some automatically, others must be applied for. Here's an overview of deadlines and changes, as well as useful tips.
When is the deadline for filing the tax declaration 2023?
The general deadline for submitting the tax declaration has shifted several times in recent years. Compared to the previous year, it moves forward by a month: The tax declaration 2023 must be submitted by no later than Monday, 2. September 2024 (since the 31st of August falls on a weekend).
For those who prepare their tax declaration with the help of a tax advisor or a tax relief association, the deadline is later. In this case, the deadline is 2. June 2025. The tax office can also request earlier submission in exceptional cases.
Citizens can also voluntarily submit their tax declaration later, even though they are not obligated to do so (see below). The voluntary tax declaration can be submitted up to four years later: For tax year 2023, the cut-off date is therefore 31. December 2027. And: Until the end of 2024, the voluntary tax declaration for 2020 can still be submitted.
If a valid tax declaration is not submitted on time, the tax office can demand a delay penalty. This amounts to 0.25% of the statutory income tax – at least €25 per month started.
Can I extend the deadline?
Extension of deadlines only applies in justified exceptional cases, provided the reasons are not self-inflicted. Those who wish to submit their tax declaration later can apply for an extension at the competent tax office. According to the Consumer Center, reasons include illness, longer stays abroad, or missing documents. The tax office communicates in writing whether the extension has been granted and, if so, what the new deadline is. However, it may also require the tax declaration to be submitted on time with a reference to missing documents - a "preliminary" notice can then be corrected later.
Who is required to file a tax declaration?
The submission of a tax declaration is mandatory for:
- Couples with tax classes 3/5 or 4 with a factor
- Employees with tax class 6
- Self-employed persons with earnings from freelance work or a business
- Persons who had taxable benefits (unemployment benefit I, short-time work benefit, parental benefit, disability benefit) or untaxed secondary income of more than €410
- Pensioners, whose income exceeds the tax-free allowance of €10,908.
## How can I file my tax declaration best?
The paper-based tax declaration is gradually fading out. While submitting the forms by post is still possible for employees and pensioners without income from self-employment, financial offices have established the digital way as standard. Using the free Online portal "Elster" of the financial offices, the tax declaration can be filled out and sent paperlessly. Documents no longer have to be sent directly - they only need to be presented upon request from the tax office.
A practical alternative to Elster are commercial tax programs or apps: They cost between 20 and 45 Euro, simplify the process, and provide tips and hints to ensure that nothing important is forgotten. Thus, the price is easily recouped. Wiso is the test winner at Stiftung Warentest, but other tax programs also perform well.
Those who do not trust themselves to handle the tax declaration alone with tax software can seek professional help from a tax relief association or tax advisor. This usually costs a few hundred euros. The exact costs depend on the complexity of the case and income. Tax relief associations are cheaper but only open to employees, civil servants, and pensioners (self-employed persons are not).
By the way: Expenses for tax consultation or tax software can also be deducted from the tax in the following year.
What's new in tax year 2023?
The federal government has passed several tax reliefs for tax year 2023. The financial offices will automatically consider the increased basic deduction, up to which no taxes have to be paid on income - it rose from 10,347 to 10,908 Euro. Correspondingly, the other thresholds for the respective higher tax rates also increased.
The child deduction also increased by 360 Euro to 9,312 Euro. Parents can benefit from the higher child benefit of 250 Euro per child instead. The tax office checks this automatically. In addition, the relief for single parents was increased by 252 Euro to 4,260 Euro.
The training allowance increased from 924 to 1,200 Euro per calendar year. Parents can set this off if they support their full-age children, who no longer live at home, during their vocational training.
Expenses for retirement savings can now be fully set off as special expenses.
The employee flat rate expense allowance for advertising costs was increased from 1,200 to 1,230 Euro. The tax office grants this amount flat rate if no higher business-related costs are proven.
The saver flat rate expense allowance increases from 801 to 1,000 Euro for singles and from 2,001 to 2,000 Euro for couples. Up to this amount, capital income (interest, dividends, capital gains) are tax-free. To avoid withholding tax, a waiver must be filed with the bank (can be divided among several institutions).
Those who work from home extensively can potentially save significantly more than in 2022. Due to the increased and expanded Home Office Allowance, instead of five euros for up to 120 days of home office work, six euros can now be claimed for up to 210 days. This results in a possible maximum of 1,260 euros, instead of 600 euros.
Those who have a separate home office can no longer claim actual costs if the home office is not the main center of professional or business activity, where more than half of the working hours are spent. The previous option of claiming up to 1,250 euros for actual costs in other cases (not the main center but no other workplace available) has been abolished. Instead, a yearly allowance of 1,260 euros can be set for the home office.
The article first appeared on 26.2.2024 and was lightly updated
- For individuals who require additional time due to valid reasons, such as illness or missing documents, they can apply for an extension of the deadline for filing the tax declaration 2023 with the competent tax office.
- In order to maximize tax relief for tax year 2023, taxpayers should consider seeking assistance from a Tax Aid Association to help them apply for any tax reliefs that require manual application.
- To take advantage of the Home Office changes for tax year 2023, individuals who work from home extensively must ensure they properly document their workdays and hours to qualify for the increased Home Office Allowance of six euros per day for up to 210 days.
- Taxpayers who wish to avoid the hassle of filing the tax declaration themselves can opt for using a free tax program or app to simplify the process, or even consider seeking professional help from a tax advisor, where the cost depends on the complexity of the case and income.
