Deductible amounts, e.g., a donation to a non-profit organization, reduce the taxable income. The annual tax that you owe the tax office is calculated from this taxable part.
Our tax rate is not structured linearly. After taking into account the basic allowance, the tax rate rises continuously. It starts at 14 percent and ends at 42 percent, excluding the so-called wealth tax of 45 percent. The applicable tax rate for a corresponding income is the marginal tax rate, also known as the personal tax rate”.
With a taxable income of 30,000 euros, the marginal tax rate for married couples assessed together (splitting table) is approx. 25 percent. If the couple donates 100 euros, they save 25 euros in income tax, plus the solidarity surcharge and church tax (on the 25 euros). The use of the income tax calculator is important now.
Advertising expenses on the occasion of an external activity
An employed, married employee has income-related expenses of 400 euros for an external activity. According to the company’s travel expense guidelines, he could receive this amount from his employer tax-free. However, our employee waives it because he believes he can “deduct this amount from tax” and the tax office pays him the 400 euros.
You already know that the employee is mistaken! If the taxable income is again 30,000 euros, the 400 euros in advertising costs result in tax savings of around 100 euros. The employee therefore pays almost 300 euros out of pocket. In addition, the employee must know that tax savings will only occur if the employee’s lump sum of EUR 1,000 with the EUR 400 travel expenses is exceeded.
You should always apply for reimbursements due from your employer. Money from the employer is better than money from the tax office.
As part of the investigation, the tax office has to determine ex officio the legal and factual circumstances of the taxpayer that are significant for taxation. It determines the type and scope of the investigation (Section 88 AO). To this end, the taxpayer must truthfully disclose all facts relevant to taxation (Section 90 AO).
Specifically, this means that a taxpayer who is legally obliged or requested by the tax office to submit a tax return must fill it out to the best of their knowledge and submit it to the tax office. This declaration is checked by the tax office clerk responsible for the internal distribution of business at the tax office. He can also access information from so-called control messages or tax databases. If the information is unclear or needs to be supplemented, the processor can ask the taxpayer for further clarification. He then sets the tax through a tax assessment. The tax assessment is a written administrative act that becomes effective upon notification to the taxpayer. The request is linked to the tax assessment,to pay the assessed tax within a certain period (usually one month).