What is the basic tax-free allowance and at what income level do I have to pay taxes?
February 9, 2022 | 40,00 EUR | answered by Andreas Stricker
Dear tax consultant,
my name is Jenny Weise and I urgently need your help with my income tax return. I have heard that there is a basic allowance, above which you do not have to pay taxes. However, I am unsure about how high this allowance actually is and at what income level I have to start paying taxes.
Currently, I am working in a part-time job and earn about 1,200 euros gross per month. Additionally, this year I also have income from a mini job and interest earnings on my savings account. In total, my annual gross income amounts to approximately 15,000 euros.
My concerns are that I have never done an income tax return before and I do not know if I am actually subject to taxation. I want to do everything correctly and on time to avoid any issues with the tax authorities.
Can you please explain to me exactly how high the basic allowance currently is and at what income level I have to start paying taxes? Are there any ways to minimize my tax burden or benefit from certain tax advantages?
Thank you in advance for your help.
Sincerely,
Jenny Weise
Dear Mrs. Weise,
Thank you for your inquiry regarding your income tax return. I would be happy to assist you and provide you with all the information you need to clarify your tax situation.
The basic tax-free allowance is an important point in income tax. For the year 2021, it is €9,744 for singles and €19,488 for married couples filing jointly. This means that as a single person, you only become taxable once your annual income exceeds the basic tax-free allowance. In your case, with an annual gross income of approximately €15,000, you are still below the basic tax-free allowance and therefore not liable for tax.
However, you should still submit an income tax return as you have income from a mini job and interest earnings. Although these earnings do not need to be taxed, the tax office wants to be informed about them. By submitting the tax return, you may also be able to claim back any overpaid taxes.
There are also ways to minimize your tax burden or benefit from tax advantages. For example, you can claim work-related expenses such as commuting costs or work equipment. Additionally, special expenses like donations or insurance contributions can be deducted for tax purposes. Therefore, it is worth carefully documenting all relevant expenses and including them in your tax return.
If you have any further questions or need assistance with your income tax return, I am happy to help. Please do not hesitate to contact me. I wish you success in managing your tax matters.
Best regards,
Andreas Stricker
