What kind of allowances are there and how high are they?
|Amount in 2019 in euros
|Single parenting relief amount
|Lump sum for the disabled
|depending on the degree of disability up to 1,420
|Trade tax allowance
|for sole proprietorships and partnerships 24,500
|Child allowance up to two children
|Saver lump sum
|Lump sum for trainers
|up to 2,400
How do you apply for it?
For most exemptions, a separate application to the tax office is necessary. You do not have to be active only with the basic tax-free allowance. This amount is automatically deducted from annual income tax. The basic tax-free allowance is not only valid for employees, but also applies to the self-employed, pensioners and students.
If you want to benefit from the other allowances, an application for a wage tax reduction must be submitted to the tax office.
How can you calculate your net salary?
The net wage is calculated by deducting all relevant taxes from the gross salary. How much net you have left in your wallet is an important question, because this salary is the measure of the financial resources you have available to make a living.
The following example assumes a 40 year old single parent with one child. This belongs to income tax class II, lives in Saxony, is compulsorily insured by law and does not pay church tax.
The gross salary is 4,837.76 euros
The following duties and taxes must be taken into account:
|Pension insurance (18.60%)
Unemployment insurance (2.50%)
Long-term care insurance (3.05%)
Health insurance (15.50%)
The result is the following calculation:
– EUR 449.91 pension insurance
– € 60.47 unemployment insurance
– 91.88 euros long-term care insurance
– 351.66 euros health insurance
– 891.25 euros wage tax
– 42.59 euros soli surcharge
– EUR 0.00 church tax
= 2,950 euros net wages
Is it possible to enter a lump sum or tax exemption for the income tax classes?
Two lump sums are important for salaried employees. These are special expenses and advertising expenses . A lump sum of 108 euros per person is set for special expenses. However, this sum does not really matter in the end.
It is different with the advertising fee. This currently amounts to 1,000 euros and is therefore quite significant.
Advertising expenses include, for example:
- Application costs
- Specialist literature
- Work equipment
- Training costs
If income tax expenses are to be taken into account, complete proof is required. Since there is no telling whether you will get over the 1,000 euro flat rate, collecting receipts over the year can ultimately prove to be free and superfluous.
What is the difference between a lump sum and an allowance?
Allowances and lump sums lead to a reduction in taxable income and consequently help you to minimize your tax burden. Some allowances are deducted automatically, while others need to be applied for.
An exemption is a tax-free portion of income. Tax must first be paid on amounts in excess of this amount. The lump sum is a certain amount that can be deducted from tax without the need for proof of receipt. Accordingly, sums that are above the lump sum can usually also be deducted, but only if the corresponding documents are available.
Income tax bracket in the event of unemployment
Unemployment does not have a direct impact on the income tax bracket. So everything stays the same. A change is only necessary if the unemployed person has been classified in tax class VI beforehand. Tax class VI does not apply to the unemployed.
All unmarried unemployed people keep tax class I. Married people keep the tax class that they have chosen with their partner. Unemployed and married part-time jobbers are usually classified in tax bracket 5.
Your wages are reduced by the wage tax. How much taxes have to be paid depends on the income tax bracket. The division into different tax brackets helps employers to calculate the wages, as the different lump sums and allowances are already taken into account.
Classification is based on marital status in six different income tax brackets. Various income tax combinations are possible for married people. This results in tax advantages. The tax burden can also be reduced by lump sums and allowances. However, these must usually be requested separately from the tax office.