A complete review of Steuermachen. Is it the best way to file income tax return in Germany?
Taxes are one of the biggest certainties in life. But especially in Germany, taxes carry a great significance. In this article, I will be sharing with you the best way to file Income Tax returns in Germany.
Taxes in Germany – A Brief
Firstly, we need to understand how taxation works in Germany. If you are working in Germany, you are required to pay taxes on your income. For most people, taxes are paid through payroll deductions by the employer.
However people also choose to submit an annual income tax return to the Finanzamt.
What is an income tax return in Germany ?
An Income tax return or tax declaration is a document that one can file to the finanzamt to see if they have paid the right amount of tax for the previous financial year. The German term for this is Steuererklärung.
What are the tax brackets in Germany?
In Germany, you will pay taxes on income earned. Since Germany has a progressive tax system, the tax percentage increases with increase in taxable income. The table below shows the tax brackets in Germany.
Less than 9.984 euros : 0%
9.985 - 58.596 euros : 14% to 42%
58.597 - 277.825 euros : 42%
More than 277.826 eur : 45%
To illustrate the tax classes in Germany with more detail, I have made this video which you can refer to!
Who needs to file an income tax return in Germany?
Even if it is not mandatory for employed people, many choose to file an income tax return in Germany. Although most people do it in hope of a refund. However, you are subject to submit one if you belong in one of these catetgories :
- You are self-employed / Freelancing / running a business
- You have multiple sources of income
- Married couple opted for tax class 3 or tax class 5
- You receive extraordinary income (like severance payment)
- Income received from abroad
Despite the tight taxation rules, there is a tax exemption with a minimum limit on the taxable income.
For Unmarried Individuals – 9984 euros
For Married Couples – 19.96800 Euros
If your income falls above this limit, you will have to pay income taxes. Subsequently you will also be filing a tax return.
Therefore we will now move on to the best ways to file income tax return in Germany.
Three ways to pay Income Tax Return in Germany
There are several ways you can go about filing your income tax return in Germany. However, you should choose the best way that does not end up causing your inconvenience.
1. Filing your tax return directly at the Finanzamt
Firstly, we look at the most traditional way of filing your income tax return in Germany. In this way, you should collect your Tax Return form at the Finanzamt. You then need to fill the form with your necessary details. The main details necessary for your tax return are the following :
- Your Tax ID
- Finanzamt address
- IBAN of a German Bank Account
- Proof for Tax Deductions
A Lohnsteuerbescheinigung is an annual wage and tax statement that employers provide to their employees. It discloses information such as your employment period, your income, your tax deductions etc.,
Filing taxes in this way is a good option, but only if your finances are relatively simple. If you have additional income sources, this method will prove to be complicated and time consuming.
2. Hire a Private Tax Consultant
Another way of filing your tax return is by hiring a tax consultant. In this way, you will be outsourcing the work to a qualified professionals. Tax Consultants help people and organizations in paying their taxes. They hold expertise in tax law, tax compliance, and tax planning. Both individuals and business owners can hire a tax consultant for long and short-term tax optimization. However, the consultation charges may not suit everyone.
Consultants charge fees in two different. In some cases, fees can be charged at a fixed rate for a one-time service. On the other hand, consultants may charge a varying rate depending on the taxable income of the client.
Therefore, it is not really ideal if you are looking to cut down costs.
3. File your Income Tax Return in Germany from the comfort of your home
Finally, I will share with you the most convenient way of filing your income tax return. With the help of Steuermachen!
Steuermachen provides income tax return filing services for a wide demographic of people such as workers, employees, students, and retirees. Supervised by experts in tax law, Steuermachen will ensure that the technical content of is always up to date and of the highest level. Communication by commissioned tax experts also improves understanding with the tax authorities.
How does Steuermachen work?
With Steuermachen, you will get a personally assigned consultant who will check all your documents for you and advise you on any questions. Steuermachen also files your return on your behal and send you once the asssesment on your return has been sent by the finanzamt.
All of this can be done in 4 simple steps!
How to file your income tax return in Germany with Steuermachen?
Filing your income tax return with Steuermachen is very simple. Now you can have your tax return created smartly and securely online, without appointments from the comfort of your own home!
Step 1 : Order a Tax Return on the Steuermachen website
You simply need to visit teh Steuermachen website and place an order. You need to fill an order form and choose the year for which you are filing the tax return.
Step 2 : Prepare and Send over your documents
You will immediately receive a checklist that you can use to compile the necessary documents. Followed by that, you simply send the documents listed over to Steuermachen.
Step 3 : Personal Consultant
A personal consultant is assigned to you who will offer you tax solutions. Subsequently they file the tax return on your behalf.
Step 4 : Collect your tax assessment
Once your tax assessment has been issued by the tax office, it will be checked by your tax experts and forwarded to you.
The process is so convenient and seamless! Compared to other ways of filing your tax returns, Steuermachen is simply the best solution for you.
Steuermachen allows you to estimate the pricing before you commit to the services. Refer to the link below to see the current price list. You can also calculate the estimated fee based on your gross taxable income on the Steuermachen website.
Based on fair and social pricing, taking into account the legal advisory powers of the respective tax offices, the services provided by the tax offices are invoiced in accordance with the statutory provisions and appropriate fees.
There are several reasons why you should go with Steuermachen instead of filing the tax returns yourself.
Firstly, you can avoid the overwhelming stress of sitting down at the end of the financial year and calculating all your taxes. Avoiding the stressful process is something I definitely reccommend!
Especially if you run your own business, you will be spending valuable time and resources on filing your tax returns instead of working on your business!
But the most important point is that any small mistakes or errors could end up costing you more!
Whereas with Steuermachen, you will get complete coverage and representation until the end. If you want to simplify the process of filing your tax return, I suggest you to go with Steuermachen!