{"id":11289,"date":"2019-11-20T13:56:42","date_gmt":"2019-11-20T12:56:42","guid":{"rendered":"https:\/\/tunal-stb.de\/wage-tax-reduction-allowance\/"},"modified":"2023-07-21T09:36:30","modified_gmt":"2023-07-21T07:36:30","slug":"wage-tax-reduction-allowance","status":"publish","type":"post","link":"https:\/\/tunal-stb.de\/en\/wage-tax-reduction-allowance\/","title":{"rendered":"Wage tax reduction – allowance"},"content":{"rendered":"

“Payroll Tax Reduction – Allowance.”<\/h2>\n

Allowance for wage tax deduction<\/h2>\n

Increased income-related expenses, special expenses and extraordinary expenses can already be taken into account for employees when deducting income tax. The tax-reducing effect then takes effect immediately when the monthly wage\/salary payment is made and not only as part of the income tax assessment.<\/p>\n

The application for wage tax reduction must be submitted to the tax office using an official form; the tax authorities store this wage tax deduction data in the ELStAM database.<\/p>\n

Beginning October 1, 2019, a payroll tax allowance may be claimed for 2020<\/strong>, valid for a maximum of two calendar years<\/strong>.<\/p>\n

An application for a wage tax reduction for the current year 2019<\/strong> can also be submitted until November 30, 2019<\/strong>, so that an allowance can still be taken into account, for example, when determining the wage tax for December.<\/p>\n

Eligible expenses<\/h2>\n

Income-related expenses are only taken into account to the extent that they exceed the employee’s lump-sum allowance of 1,000 euros (in the case of pension payments: 102 euros). However, an allowance, e.g. for income-related expenses and special expenses, is only possible if the sum of the expenses to be taken into account exceeds the application limit of<\/strong> 600 euros.<\/strong> <\/p>\n

According to Section 39a EStG<\/a>, the following expenses in particular are eligible:<\/p>\n