The 2022 tax year ends on December 31. If you pay attention to a few points at the end of the year, you can ensure that you get more money back on your next tax return.
Just submitted your last tax return and already thinking about the next one? That can be worth it. Because if you cleverly plan your expenses around the turn of the year, you may be able to get more back from the tax office. In addition, a few important deadlines end in December, which can also be worth hard cash.
The tax return for 2022 only has to be with the tax office by October 2, 2023. If a tax consultant or wage tax association is involved, even until July 31, 2024. But the relevant tax year ends on December 31. Means: Only costs that are incurred this year can be deducted in the tax return for 2022.
A brief overview of what you should pay attention to at the end of the year:
1. Tax 2022: Purchases this year?
Most expenses for the job (equipment, commuter allowance, home office, etc.) can only be deducted in the year in which they were incurred. Thanks to the flat-rate income-related expenses, the tax office automatically calculates 1,200 euros in job-related costs for every employee anyway. This means that only if the expenses are higher in a calendar year does this result in an additional tax refund.
Anyone who wants to buy expensive work equipment such as a notebook in the near future can therefore consider in which year it will be cheaper from a tax point of view. If the lump sum is already cracked with certainty in 2022, then a purchase this year will have a tax-reducing effect on the next tax return. If you are above the flat rate every year anyway, it is less important for you in which year you can sell the purchase.
Please note: some work equipment such as a smartphone or desk can only be sold off in the year of purchase up to a price of 952 euros, more expensive things have to be written off over several years. Computers and PC accessories have not been subject to a price limit since 2021.
2. Pool healthcare spending
Health expenses for medicines, treatments and other medically necessary things should also be bundled into one calendar year instead of being divided into two, if possible and not disadvantageous for health reasons. Because such medical expenses can only be deducted as special expenses if the reasonable load limit is exceeded. Depending on income and family situation, this is 1 to 7 percent of annual earnings.
The “extraordinary burdens” include illness and care costs as well as funeral costs or replacement costs after a natural disaster such as flooding. Important when assigning the costs to the correct calendar year: It is not the date of the invoice that is decisive, but always the date of payment.
3. Pay tradesman bills later
In the case of tradesmen and household-related services, the opposite applies to healthcare expenditure: there are maximum tax deduction limits, which is why it can make sense to spread the costs over several years. For example, 20 percent of the costs (excluding material costs) can be deducted for craftsmen’s services up to a total expenditure of 6000 euros per year (20 percent of which is 1200 euros). So if you’re having your bathroom renovated but have exhausted the maximum amount earlier in the year, it’s better not to pay the bill until the new year – as long as the craftsman cooperates.
A maximum of EUR 20,000 per calendar year applies to household-related services such as childcare, carers or cleaning help. Up to this amount, 20 percent can also be deducted, i.e. a maximum of 4000 euros per year.
4. Don’t miss the application deadlines
At the end of the year, some application deadlines expire, which can be used to save taxes. Those who are affected should not oversleep them.
- The first deadline even ends on December 15: Until then, investors who have deposits with different banks and want to offset profits from one with losses from the other can do one loss certificate apply for. This saves withholding tax on the realized gains.
- Savers should also check whether they have anything to do with their exemption orders have to change. With these, individuals can have interest income up to a total of 801 euros (pairs 1602 euros) tax-free. The amount can be split between different institutes. If you get interest credited somewhere where you don’t have an application for exemption, you would otherwise pay 25 percent tax on it. Incidentally, in 2023 the savings allowance is to be increased from 801 to 1000 euros and from 1602 to 2000 euros.
- Anyone who saves on a Riester contract must submit the application for state funding by December 31, 2022 at the latest Riester allowance have put in 2020. If you don’t want to think about it every year, you can apply for a permanent allowance from your provider. In order to receive the full state allowance, one must pay in 4 percent of the gross pensionable income from the previous year. Anyone who received a salary increase in 2021 and has not adjusted the payments can pay the contributions until the end of 2022.
- At the end of this year, the deadlines for an application will end housing premium 2020 as well as for the application Employee savings allowance for capital-forming benefits 2018.
- Also, New Year’s Eve 2022 is the last chance to have a voluntary tax return for 2018 to deliver. Those who were not obliged to do so at the time may be able to subsequently receive a tax refund.
5. Deduct donations from taxes
Many people help with donations to non-profit organizations just before Christmas. If this is recognized as tax-privileged, the tax authorities reward the good deed: A donation of up to 20 percent of the annual income can be deducted from the tax as a special expense. For amounts up to 300 euros, a bank statement is sufficient as proof; for larger amounts, the recipient must issue an official donation receipt.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
