Tax return for severance pay
July 28, 2013 | 30,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
Hello,
I have a question regarding tax returns for severance payments.
In the last 10 years, I have not filed a tax return and I am now wondering if it would be advisable in my case to file a tax return and if I can expect a refund, or if I may potentially have to make an additional payment, in which case I would prefer to continue not filing a tax return.
Here are the details:
In 2012, I was employed until October 31, 2012, and have been unemployed since then.
My gross salary until October 31, 2012 was 39,248.84, with withheld income tax of 7,404.22 and withheld solidarity surcharge of 407.17.
In addition, I received a severance payment of 116,999.00, with withheld income tax of 47,085.00 and withheld solidarity surcharge of 2,589.67.
From November 1 to December 31, 2012, I received unemployment benefits totaling 778.77.
I am single, tax class 1.
Would it be advisable to file a tax return in this case, or should I expect to make an additional payment?
Thank you and regards.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into consideration your efforts and the rules of this platform.
Please note that my explanation is based on the situation presented, and that adding, omitting, changing information or the ambiguity of information can change the tax result.
Since you received a severance payment of 116,999 EUR as well as unemployment benefits of 778.77 EUR in the calendar year 2012, you must submit an income tax return for the calendar year 2012 (§ 38 Fiscal Code (AO) in conjunction with §§ 36 para. 1 and 46 para. 2 No. 1 and No. 5 Income Tax Act (EStG)). The income tax return should have been submitted by May 31, 2013. However, if a tax advisor prepares the income tax return for you, the deadline is extended to December 31, 2013.
The unemployment benefits you received are exempt from income tax, but are subject to the so-called progression clause (§§ 3 No. 2 and 32b para. 1 No. 1a EStG). This means that the unemployment benefits are taken into account when determining the income tax rate, which is then applied to your taxable income. The withholding tax on your monthly gross salary is calculated as if you received the gross salary in equal amounts every month of the calendar year. However, since you received tax-free unemployment benefits from November 1, 2012 to December 31, 2012, the withholding tax for the calendar year 2012 may have been too high. Therefore, you can expect an income tax refund.
Best regards,
Dipl.-Kfm. Frank-Olaf Illiges
Tax Advisor
Am Wieksbach 55
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
e-mail: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung.de
