Ask a tax advisor on the topic of Income tax return

Foreign income

May 8, 2011 | 25,00 EUR | answered by Michael Herrmann

Hello,

as a German citizen with main residence in Germany, I worked as an employee in Austria throughout the year 2010. I commute to my family in Germany on weekends.

1. Do I have to submit a German tax return? I file taxes jointly with my wife, who is not employed. I still have all my capital income only with German banks.

2. If yes, in which line of the tax return do I need to enter the foreign employment income?

Best regards

Michael Herrmann

Dear questioner,

First of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your commitment during the initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

As you have a residence in Germany, you are subject to unlimited tax liability here. This means that you must file an income tax return in Germany.

The foreign employment income is to be declared in attachment N line 21. The gross wage minus the advertising costs must be declared here. The amount of advertising costs is to be determined according to German law. It is recommended to attach a separate calculation. Furthermore, the taxation in Austria and the tax paid there must be stated and proven. This procedure does not apply if you spend less than 183 days a year in Austria.

The capital income is to be declared as usual in attachment KAP.

I hope that with this information, I have provided you with a sufficient overview of the situation in the context of your commitment and this initial consultation and remain

Sincerely,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor