What tax advantages do I have as an employee?
June 5, 2024 | 50,00 EUR | answered by Lilli Reuter
Dear lawyer,
My name is Bernhard Hartmann and I work as an employee in a medium-sized company. Over the past few years, I have often wondered what tax benefits I am entitled to as an employee and how I can best utilize them.
Currently, I pay a significant portion of my income to the tax office every month and I wonder if there are ways to reduce my tax burden. I have heard that there are various tax exemptions and deductions that I can claim as an employee, but I am not sure which ones are relevant to me and how to claim them.
Additionally, I am concerned about the tax treatment of benefits and discounts that I receive from my employer. I wonder if these also need to be taxed and if there are ways to optimize their tax treatment.
Due to my lack of knowledge in tax matters, I often feel uncertain and would like to learn more about my tax rights and options as an employee. Therefore, I would like to ask for your advice on what tax benefits I am entitled to as an employee and how I can best utilize them to reduce my tax burden.
Thank you in advance for your support.
Sincerely,
Bernhard Hartmann
Dear Mr. Hartmann,
Thank you for your inquiry and your interest in tax-related topics. It is understandable that you are thinking about how to reduce your tax burden as an employee and what tax benefits you are entitled to. I would be happy to give you an overview of some important aspects that may be relevant to you.
As an employee, there are various tax benefits available to you that can help reduce your tax burden. One important point is the deduction of business expenses. This includes expenses such as travel between home and workplace, work equipment like laptops or professional literature, training costs, union dues, and much more. You can claim these costs in your tax return and thus reduce your taxable income.
Furthermore, there is the flat-rate deduction for business expenses, which you can automatically claim in your tax return without having to provide specific evidence. Currently, this amount is 1,000 euros per year and already covers many typical costs of an employee.
Tax benefits also include tax-free allowances such as the basic allowance, which is granted to every taxpayer and remains tax-free up to a certain amount. Relief amounts for single parents, disabled persons, or those in need of care can also reduce your tax burden.
Regarding the tax treatment of in-kind benefits and discounts, these are usually taxed as a monetary benefit. This applies, for example, to benefits in kind such as fuel vouchers, meal vouchers, or company cars. However, there are also exceptions and thresholds up to which in-kind benefits do not need to be taxed.
To make optimal use of your tax rights and opportunities as an employee, I recommend that you make a detailed list of your business expenses, collect all relevant receipts, and include them in your tax return. It may also be useful to seek advice from a tax advisor to fully exploit all possibilities and avoid mistakes.
I hope this information is helpful to you and I am available to assist you with any further questions. Good luck in optimizing your tax situation!
Best regards,
Lilli Reuter
