Ask a tax advisor on the topic of Income tax return

One-time side job and income tax

January 12, 2017 | 25,00 EUR | answered by Steuerberater Udo Glinka

Hello,

I was employed subject to social security contributions throughout the year 2016. My earnings from this employment exceeded the tax-free allowance. In addition to this employment, I provided a one-time service (research and written expertise) for a former, not current, employer. Since it was clear from the beginning that this would be a one-time service, I did not register a business. I invoiced nearly 2,000 EUR for the service, without charging VAT. My question is: Under which income tax category does this service fall? Is it possibly even tax-exempt, as it is not "derived from a business"?

Thank you and best regards.

Steuerberater Udo Glinka

Dear inquirer,

Based on the information provided to me, I am answering your inquiry as follows.

Since you do not provide the service on a sustainable basis, but only once, it is considered other income according to § 22 No. 3 EStG.

The income remains tax-free if it is less than €256 in the calendar year. If the income reaches or exceeds this amount (threshold!), it is fully taxable and must be declared in the SO attachment of the income tax return.

You can deduct your expenses, but you must provide evidence as there is no flat-rate deduction for advertising costs. Deductible expenses include, for example, travel expenses, office supplies, etc.

I hope my answer was helpful to you.

Best regards,

Udo Glinka (Tax Consultant)