Can I as a cross-border commuter also benefit from tax allowances?
July 1, 2022 | 60,00 EUR | answered by Thomas Schottmann
Dear tax advisor,
My name is Lukas Klinger and I work as a cross-border commuter in Switzerland. I have heard that there are tax allowances that I could benefit from as a cross-border commuter. However, I am unsure of whether and how I can claim these tax allowances.
Currently, I pay taxes in both Switzerland and Germany. I am married and have two children. My main residence is in Germany, while I commute to work in Switzerland daily. I am registered as unlimited tax liable in Germany.
My concern is that I might not be utilizing tax advantages that are available to me as a cross-border commuter. I want to ensure that I take advantage of all opportunities to minimize my tax burden and optimize my financial situation.
Could you please explain to me which tax allowances are relevant for cross-border commuters and how I can claim them? Are there specific regulations or forms that I need to consider? What steps do I need to take in order to benefit from these tax allowances?
I thank you in advance for your support and advice on this matter.
Sincerely,
Lukas Klinger
Dear Mr. Klinger,
Thank you for your inquiry as a cross-border commuter in Switzerland. As a tax advisor specializing in cross-border commuter issues, I would be happy to assist you and provide some important information on tax exemptions for cross-border commuters.
As a cross-border commuter, you generally have the opportunity to claim tax exemptions to minimize your tax burden. Relevant exemptions include, for example, the basic exemption, child exemptions, lump sum deductions for work-related expenses, as well as other deductible amounts for specific expenses such as work clothing, commuting costs, or additional expenses for meals.
First and foremost, it is important to know that as a cross-border commuter, you pay taxes in both Switzerland and Germany. Typically, your income from Switzerland is credited in Germany, so there is no double taxation. However, there are some peculiarities in the tax return for cross-border commuters.
To claim tax exemptions, you must submit an income tax return in Germany. You should list all relevant exemptions and deductions to optimize your tax burden. There are specific forms for cross-border commuters, such as form ESt 1 C for cross-border commuters, where you can list your income and work-related expenses.
It is important that you collect and retain all necessary documents and evidence for your statements, as the tax office may request them during an audit. Additionally, make sure to meet all deadlines for submitting the tax return to avoid possible fines.
I recommend contacting a local tax advisor to ensure that you make full use of all tax opportunities as a cross-border commuter. A tax advisor can provide individual advice and tailored recommendations based on your personal situation.
I hope this information is helpful to you and I am available for any further questions.
Best regards,
Thomas Schottmann
