How can I optimize my tax return as a cross-border commuter?
March 24, 2022 | 60,00 EUR | answered by Selma Rosenblatt
Dear Mr. Tax Advisor,
My name is Jens Lauer and I work as a cross-border commuter in Switzerland. In my professional life, I regularly commute between my place of residence in Germany and my workplace in Switzerland. In the past, I have prepared my tax return independently, but lately I have realized that the tax regulations for cross-border commuters are very complex and I may be giving away money by not utilizing all possible options optimally.
My biggest concern is that I may be paying taxes twice or not taking advantage of certain deductions that I am entitled to. I want to ensure that I optimize my tax return as a cross-border commuter to protect my income as best as possible and take advantage of any tax benefits.
Could you please give me tips on how to efficiently and correctly prepare my tax return as a cross-border commuter? Are there specific deductions or tax regulations that I should be aware of as a cross-border commuter? What documents or information do you need from me to be able to help me to the best of your ability?
Thank you in advance for your support and expertise.
Kind regards,
Jens Lauer
Dear Mr. Lauer,
Thank you for your inquiry regarding the tax situation as a cross-border commuter in Switzerland. As a tax advisor specializing in cross-border commuter issues, I can provide you with some tips on how to optimize your tax return to take advantage of potential tax benefits and avoid double taxation.
First of all, it is important to know that as a cross-border commuter in Switzerland, the so-called Double Taxation Agreement (DTA) between Germany and Switzerland generally applies. This agreement determines which country has the right to tax which income and aims to ensure that you are not taxed twice. Therefore, it is important that you collect all relevant income and tax certificates from Germany and Switzerland and consider them in your tax return.
An important deduction that you can claim as a cross-border commuter in Switzerland is the lump sum deduction for professional expenses. This amounts to a lump sum of 4,000 CHF per year and can be claimed without proof. In addition, you can also claim other job-related expenses such as travel expenses, additional meal costs, or work equipment. Therefore, it is advisable to carefully keep all relevant receipts and evidence.
Furthermore, you should be aware that as a cross-border commuter in Switzerland, you can also take advantage of certain tax benefits, such as the possibility of a withholding tax refund. If you have paid withholding taxes in Switzerland, you can claim them in your German tax return under certain conditions and thus reclaim a portion of the taxes paid.
To be able to optimize your tax return, I need all relevant income and tax certificates from Germany and Switzerland, as well as evidence of job-related expenses and withholding taxes from you. The more information you provide me with, the better I can help you optimize your tax return as a cross-border commuter.
I hope these tips will be helpful to you and I am available for further questions. Thank you for your trust and I look forward to assisting you further.
Best regards,
Selma Rosenblatt.
