Hot Off the Press: Tax Season 2024: A Guideline for Filing Your Declaration
- 🕒 4 mins of tax talk
Key info for 2024 tax returns: Essential points to remember - 2024 Tax Return Filing: Essential Fact to Remember for Next Year's Submission
Let's dive into the nitty-gritty of filing your 2024 income taxes. If you're eager to secure that pending tax refund, better get cracking! Here are the crucial dates and updates for the tax season, complete with top tips to make it a breeze.
When's the Final Countdown for the 2024 Tax Return?
Remember the old deadlines? Well, they've had a makeover. THIS YEAR, the 2024 tax return must be submitted no later than Thursday, July 31, 2025 (bye-bye to August 31, since it's a weekend). If you're working with a tax consultant or association, you've got an extra edge - your tax return can be submitted as late as April 30, 2026. Keep in mind, though, that the tax office could still demand an earlier submission in special cases.
If you're feeling generous and want to submit your tax return voluntarily (even though it's optional), you can do so up to four years later. So, that means the cutoff for the tax year 2024 is December 31, 2028. And, fun fact - you can still file the voluntary tax return for 2021 until the end of 2025!
Late submissions can lead to fines. The penalty? 0.25% of the estimated tax - at least €25 per started month. Ouch!
Can I Ask for More Time to File?
You can only apply for an extension in dire, unique situations, and it shouldn't be a self-imposed delay. Reach out to the responsible tax office to request an extension, and they'll notify you if they've granted your request. The new deadline will be provided accordingly. In some cases, the tax office may demand an immediate submission, with the possibility of making corrections later.
Who Needs to File a Tax Return?
Are any of these you?
- Couples with tax classes 3/5 or 4 with a factor
- Employed individuals with tax class 6
- Self-employed with freelance activities or a trade
- Recipients of unemployment benefits (unemployment benefit I, short-time work allowance, parental allowance, sickness benefit) or secondary income exceeding €410
- Retirees whose income surpasses the basic allowance of €11,784
Filing voluntarily can be advantageous, as it often leads to the recovery of overpaid taxes. According to statistics, the average tax refund comes in at around €1,100.
Did you know that a quarter of taxable individuals still submit their declaration on paper? While this option is still available for employees and pensioners without self-employment income, the tax offices have made digital methods standard. File your tax return through the online Elster portal of the tax offices, or take advantage of commercial tax programs or apps to ease the process for a modest fee.
Too timid to tackle the task alone? Seek the help of a tax assistance association or tax consultant. Just beware that their services usually cost a few hundred euros, with the costs depending on the complexity of your case and income. Tax assistance associations cater primarily to employees, civil servants, and pensioners (excluding the self-employed).
You Pay, You Plan Ahead: Expenses related to tax consultation or tax software can be deducted from the following year's tax.
What's New for Tax Year 2024?
In 2024, the federal government has introduced tax relief measures for income tax:
- The basic allowance has risen from €10,908 to €11,784, meaning no taxes are due on income up to this amount.
- The child allowance increases to €6,612 (€3,306 per parent).
- Alternatively, parents can benefit from child benefit of €250 per child. The tax office will automatically assess which option offers the most advantage.
- The child allowance and the allowance for care, education, and training needs of children, the BEA allowance, will no longer be reduced if the child lives in an EU member state.
- The mini-job threshold has increased to €538 per month.
- Individuals who have moved because of work after February 29, 2024, can claim higher expenses as business expenses. The moving allowance rises to €964, with an additional €643 per additional household member.
- Tutoring expenses can now be claimed as business expenses, up to €1,286.
- Those affected by the 2024 floods will receive various relief measures, including deferrals, special depreciation for replacement acquisitions, and simplified proof of donations.
- Donations for COVID-19 and Ukraine relief efforts can be deducted as special expenses, up to 20% of your income.
- Tax return
- Deadline
- Voluntary submission
- Tax assistance association
- Tax consultant
Community aid schemes could prove beneficial during tax season 2024, especially for individuals facing financial difficulties. Personal-finance management, including saving for tax consultation fees and software costs, will help avoid penalties and ensure a smooth tax filing process.
