The income tax declaration may seem like a maze filled with numbers and forms for many. However, for investors and private savers, it also offers the opportunity to save cash. By recording specific expenses and meeting deadlines, you can reduce your tax burden and maximize refunds. In this article, we show you which expenses you can deduct and how to submit your income tax declaration quickly and efficiently. This way, you will effortlessly navigate through the 2023 fiscal year and ensure financial benefits.
Strategically Deducting: Correctly Presenting Your Expenses to Reduce Tax Burden
In 2023, the income tax declaration offers an excellent opportunity to save cash through the strategic deduction of expenses. To optimize the results, you should familiarize yourself with the various categories, particularly advertising expenses, extraordinary expenses, and extraordinary charges.
Let’s start with advertising expenses, which include all expenses directly related to your professional activity. A key element here is the home office. If you work from home and this room is the center of your professional activity, it can be deducted. If it’s not possible to have a dedicated office, you have the option to claim a home office allowance of up to 1,260 euros per year. Besides the home office, work equipment, such as computers and software, are also deductible. In particular, low-value assets (GWG) up to 800 euros (including VAT) can be immediately depreciated. Additionally, the commuting allowance provides an opportunity to deduct business travel expenses, while services from craftsmen for home maintenance can allow a fiscal reduction of up to 20% of labor costs, limited to 1,200 euros per year.
In the area of extraordinary expenses, we find privately beneficial costs. Here, social security contributions such as those for pension, health, and long-term care insurance stand out. The church tax and donations to recognized organizations can also bring tax advantages. Alimony payments to divorced spouses are another deductible point, but only to a limited extent. The tuition fees for private schools can be deducted at 30%, up to a maximum of 5,000 euros per child.
Finally, extraordinary expenses should not be overlooked. These include unavoidable expenses, which may arise from medical expenses if they exceed the threshold of reasonable burden and are not covered by health insurance. A similar discussion applies to care home expenses. Funeral expenses can also be considered if they exceed the inheritance.
To effectively deduct these expenses, it is advisable to carefully prepare the income tax declaration and complete the corresponding forms (such as the N form for advertising expenses or the form for social security expenses). The use of tax software can greatly simplify the process and ensure that all options are utilized to the fullest.
Efficient Income Tax Declaration 2023: Meet Deadlines and Optimize Digitally
2023 brings clear tax regulations encouraging you to effectively utilize deadlines and establish digital strategies. Submitting the tax documentation on time is crucial to avoid unnecessary penalties and fully leverage tax optimization options. The official deadline for the 2023 income tax declaration is September 2, 2024. However, those using an accountant or a tax assistance association have until June 2, 2025. This extended deadline allows many to obtain a detailed overview of deductible costs without rushing.
Digitalization presents itself as a true friend and ally. Tax software and apps are not only practical, but they also save time and are reliable in preventing errors. With applications that support automated data transfers and check plausibility, the income tax declaration becomes significantly simplified. Popular tools provide a user-friendly interface and help structure data entry. But even the acquisition and management of your documents should be done efficiently. Therefore, it is essential to organize important documents like pay slips, donation receipts, and bank statements chronologically and categorically. This organization not only supports the income tax declaration process but also ensures that no important document is lost.
Digital submission via the Elster portal offers the further advantage of completing the income tax declaration more quickly while simultaneously reducing the risk of errors. Early registration in the portal ensures that technical difficulties are avoided. Besides traditional earnings, cryptocurrency earnings should not be forgotten in 2023 due to their tax relevance; they must be declared in form SO. In this context, specialized tools support the proper recording and management.
If, despite all measures, meeting the deadlines is not possible, it is worthwhile to request an extension. This should be done in a timely manner and with valid reasons such as relocations or illnesses to avoid penalties. Last but not least, even if it is not obligatory to file a declaration, a voluntary tax declaration can be made for up to four years retroactively. This offers the opportunity to benefit from refunds that might otherwise have been overlooked.
Thus, the strategic approach to the income tax declaration in 2023 is a combination of timely planning, digital implementation, and possibly professional assistance to maximize financial advantage.