Which tax allowances apply to capital income and how can I make optimal use of them?
March 27, 2024 | 40,00 EUR | answered by Paula Köhler
Dear tax consultant,
my name is Dora Krüger and I am currently preparing my tax return for the last year. I have come across the question of what tax-free allowances apply to capital income and how I can make optimal use of them.
In the current situation, I have earned some capital income in the last year, including interest, dividends, and securities sales. I am unsure about which tax-free allowances apply to me and how I can best claim them in my tax return.
I have already researched some information on tax-free allowances for capital income, but I am still uncertain about the specific amounts that apply to me and how I should report them in my tax return. I want to ensure that I take advantage of all opportunities for tax optimization and do not miss out on any potential tax benefits.
My concerns are that I may not be aware of all the tax-free allowances for capital income and might be missing out on tax benefits. Additionally, I want to make sure that I fill out my tax return correctly and completely to avoid any tax payments or fines.
Therefore, my question to you is: What tax-free allowances apply specifically to capital income and how can I make optimal use of them to minimize my tax burden? Are there any specific regulations or tips that I should consider when reporting my capital income in the tax return?
Thank you in advance for your help and support.
Sincerely,
Dora Krüger
Dear Mrs. Krüger,
Thank you for your question regarding the tax-free allowances for capital income and how you can optimally use them in your tax return. It is good that you have already started to look into this topic and want to make sure you take full advantage of all opportunities for tax optimization.
First of all, it is important to know that there are various tax-free allowances for capital income that can be claimed in your tax return. The most important ones include the saver's lump sum, the basic tax allowance, and the lump sum for advertising costs.
The saver's lump sum is €801 for singles and €1,602 for married couples per year. This amount is tax-free for all capital income (interest, dividends, securities sales) and you do not need to declare it separately in your tax return as it is automatically taken into account. However, you should make sure that your bank or broker correctly considers this amount and does not make excessive deductions.
The basic tax allowance for the year 2021 is €9,744 (for singles) and is applied to your total income. If your capital income is below this amount, it is tax-free.
Additionally, you can claim advertising costs related to your capital income. This includes expenses such as custody fees, costs for advice or courses you have taken to improve your investment decisions.
To minimize your tax burden and make optimal use of all tax-free allowances, you should collect all relevant receipts and include them in your tax return. Also, check if your bank or broker has correctly considered the tax-free allowances and seek support from a tax advisor if in doubt.
I hope this information was helpful to you and wish you success in preparing your tax return.
Best regards,
Paula Köhler
