A tax return in Germany () is a declaration of an individual's income and other tax-relevant information submitted to a tax office (Finanzamt). For employees, income tax is usually deducted from wages during the year (Lohnsteuer).
Tax returns can be submitted electronically through ELSTER or compatible tax software. Alternatively, a tax return can be prepared by a tax adviser (Steuerberater) or a wage tax assistance association (Lohnsteuerhilfeverein).
Mandatory and voluntary filing
Employees in Germany generally do not have to file an income tax return. Filing is mandatory in several cases, for example when an employee has worked for more than one employer at the same time, has other income not subject to wage tax of more than €410, or has received more than €410 in wage replacement benefits such as unemployment benefit or parental allowance (Elterngeld).
People with self-employment, business, rental or other income also have to file.
Employees who are not required to file can submit a return voluntarily to claim deductions that were not taken into account through payroll.
Filing and deadlines
Tax returns can be submitted through ELSTER or through third-party tax software. ELSTER can retrieve wage, pension and insurance data already held by the tax administration.
For mandatory tax returns, the usual deadline is 31 July of the following year. A longer filing period applies when the tax return is prepared by a tax adviser. Voluntary tax returns can be filed within four years.
Tax forms
An income tax return consists of a main form (Hauptvordruck) and supplementary forms (Anlagen). The forms required depend on the taxpayer's circumstances.
The main forms include:
Tax category Forms Employment income Anlage N Insurance and pension contributions Anlage Vorsorgeaufwand Extraordinary expenses (medical and care costs) Anlage Außergewöhnliche Belastungen Children and child-related allowances Anlage Kind Special expenses (donations) Anlage Sonderausgaben Capital income Anlage KAP Pension income Anlage R Rental income Anlage V Self-employment and business income Anlage S, Anlage G Foreign income Anlage AUS
Tax assessment
After processing the return, the tax office issues an income tax assessment notice (Einkommensteuerbescheid). The notice shows the final tax calculation and any tax already withheld. If the amount paid is higher than the calculated tax, the difference is refunded.
An assessment can be challenged by filing an objection (Einspruch) within one month of notification.
See also ELSTER Income tax in Germany Taxation in Germany WISO Steuer
References