Streamlining Taxes for 2024: What You Need to Know (Crashing Through Barriers Edition)
- ~ 4 Min
Submit Your 2024 Tax Declaration by the Due Date: Mind the Deadline - 2024 Tax Return Preparation: Crucial Considerations to Bear in Mind
Brace yourself, tax season's here again! While the deadline for filing your 2024 taxes is still a bit away, if you're itching to squeeze out any returns, it's time to get cracking. Here's a simplified rundown of deadlines, changes, and ways to make the process painless.
When's the Deadline for Talking Taxes in '24?
Let's cut to the chase - when do you need to submit your 2024 taxes? Well, compared to last year, things have shifted up a notch. Your 2024 tax return must be handed in by Thursday, July 31, 2025 (For you weekend warriors, the August 31 date falls on a sabbath).
If you're playing with tax consultants or tax assistance groups, you might have more time. In this case, your deadline is April 30, 2026. However, keep in mind that the tax office could demand an earlier submission under certain circumstances.
Procrastinators rejoice! You can still submit your tax return several years late if you wish, but the deadline for the 2024 tax year is December 31, 2028. Plus, until the end of 2025, you can even submit the late return for 2021!
What's the fee for dragging your feet? The tax office slaps a late charge of 0.25 percent of the assessed income tax - a minimum of 25 euros per month the submission is delayed.
Can I Bend Deadlines?
Deadline extensions are tricky business and only granted in exceptional circumstances where the reason isn't self-induced. To submit your taxes later, you'll need to file a request with the responsible tax office. Reasons could include ailments, longer stays abroad, or missing papers. The tax office will get back to you with a yay or nay, letting you know the new deadline if granted. Just remember, they might require an on-time submission with a 'better luck next time' notice for outstanding documents.
Who Needs to Show Their Tax Game?
Several folks find themselves on the tax-prep bandwagon, including:
- Couples with tax classes 3/5 or 4 with partners
- Employed with a tax class of 6
- Self-employed with income from freelance activities or a business
- Recipients of unemployment benefits (unemployment benefit I, short-time work allowance, parental benefit, sick pay) or untaxed secondary income exceeding 410 euros
- Pensioners whose income surpasses the basic allowance of 11,784 euros.
Submitting a voluntary tax return can be profitable, as it often results in a hefty tax refund, averaging around 1,100 euros.
Paper or Digital?
Paper returns still have their advocates, but let's face it - the tax offices have set the digital route as the norm. You can easily fill out and send your tax return online through the free portal "Elster" of the tax offices. No more sending receipts directly - only present them if requested by the tax office.
Commercial tax programs or apps can make the process less daunting, costing between 20 and 45 euros. Because they offer tips and hints, you can recoup the cost quickly as they help avoid silly mistakes. The test winner at Stiftung Warentest is Wiso, but other tax programs perform pretty well too.
If you aren't feeling confident navigating this alone, you can enlist the help of a tax assistance group or tax consultant, but keep in mind the charges are typically a few hundred bucks. Tax assistance groups cater mainly to employees, civil servants, and pensioners, while tax consultants can help self-employed folks as well. Plus, expenses for tax consultation or tax software can be deducted from the following year's taxes.
What's New in the 2024 Tax Year?
The federal government has brought some relief to the 2024 tax year, with a number of changes benefiting taxpayers.
- The basic tax-free allowance has risen from 10,908 euros to 11,784 euros, meaning you won't pay taxes on income up to this amount.
- The child tax allowance has increased to 6,612 euros in the tax year 2024, a rise of 600 euros. Or, you can opt for child benefit of 250 euros per child, whichever is more beneficial.
- The child tax allowance and the BEA allowance will no longer be reduced if the child resides in an EU member state.
- The mini-job threshold will increase to 538 euros per month in the tax year 2024, based on the increase in the minimum wage to 12.41 euros per hour.
- Those who have relocated for professional reasons after February 29, 2024, can claim higher costs as business expenses. The moving allowance has been increased to 964 euros. For each additional household member (partner, children), you can claim 643 euros as a flat rate.
- The costs for private tutoring can now be claimed as business expenses up to 1,286 euros, an increase of 105 euros compared to 2023.
- Those affected by the floods in 2024 will receive various relief measures, including deferrals, special depreciation for replacement acquisitions, and simplified evidence for donations.
- Donations for Corona and Ukraine aid can be deducted as special expenses up to 20 percent of income.
The aid scheme for the 2024 tax year includes an increased basic tax-free allowance of 11,784 euros, potentially reducing personal-finance tax liability. If you require assistance in understanding or managing your taxes, consider using commercial tax programs, tax assistance groups, or tax consultants, as their costs can often be deducted from the following year's taxes.
