The income tax return can be a real jungle for investors and private savers, but with the right tips and tricks, it becomes a piece of cake. Discover how to save money by strategically utilizing the deduction for advertising expenses and extraordinary expenses while keeping an eye on deadlines. Our guide shows you how to complete your tax return efficiently and simply to maximize your tax benefits. The following chapters provide valuable insights into the best tricks for deductions and the simplified submission of the tax return.
Strategies for Reducing Tax Burden: Correct Use of Advertising and Extraordinary Expenses
In the 2023 income tax return, advertising expenses and extraordinary expenses offer valuable opportunities to significantly reduce your tax burden. These two categories should be used strategically to save money. Advertising expenses include those costs that are directly related to your professional activities. This particularly includes travel expenses for work. You can deduct an allowance of 30 cents per kilometer traveled and even 38 cents starting from the 21st kilometer. A precise record of the kilometers is crucial to correctly determine the maximum possible allowance.
Expenses for a home office can also be deducted, which can lead to significant savings, especially during remote work periods. If you can demonstrate the use of your home office, you can deduct allowances and specific costs, such as 20 euros per month for phone and internet costs. Note that for higher deduction amounts, individual documentation is required.
In application situations, expenses for resumes, portfolios, or travel costs can be deducted as advertising expenses. The same applies to further education and specialist literature, which is particularly beneficial for professionals who need to continue their training.
Extraordinary expenses, on the other hand, include private costs that enjoy tax advantages. These include expenses for health insurance, retirement provisions, and pensions, which fall under the category of pension expenses. Donations and church tax contributions are also particularly relevant and can be deducted without limitations. Childcare expenses allow parents to deduct two-thirds of their expenses, up to a maximum of 4,000 euros per year per child.
To ensure complete tax savings, it is essential to collect and keep all receipts related to extraordinary expenses. This is also valid even if the immediate presentation to the tax office is not necessary. By using apps or tax software, you can also ensure that all potential deductions are properly taken into account, without wasting time on complex tax issues. Accurate recording and reporting of these expenses can make the crucial difference for your financial advantage at the end of the year and should be planned carefully.
Deadlines and Digital Submission of the 2023 Income Tax Return: Efficient for Tax Success
Accurate adherence to the deadlines for the 2023 income tax return is essential to avoid possible penalties and to ensure timely access to potential tax advantages. In Germany, the deadlines are clearly defined: those required to file a return have until September 2, 2024. If a tax advisor is engaged, this deadline is automatically extended until June 2, 2025. Those interested from a tax perspective who wish to file a voluntary return benefit from being able to do so until December 31, 2027.
Digitalization has greatly simplified the income tax return process. Electronic submission, preferably via the ELSTER portal, is now considered the norm. This platform allows for the secure and structured transmission of relevant data to the tax office. Additionally, there are tailored tax software and apps that offer comfort and efficiency. The most common applications guide users step by step through the submission process and provide valuable tips for optimizing the tax burden. These digital assistants not only save time but also reduce the error rate through automatic plausibility checks.
Despite the digital advantages, patience is required: after submission, it may take 5-8 weeks before the tax notice is issued. There may be delays, especially if the tax office requests further information. To avoid extensions, it is advisable to clarify financial situations early.
In cases of unforeseen events that make timely submission impossible, an extension is only allowed in well-justified exceptional cases. A written request is necessary, and a clear presentation of the circumstances, such as prolonged illness, is essential. Timely request for such extensions is therefore of great importance to avoid penalties and to have peace of mind for tax strategies.