What options are there for tax savings in the income tax return?
September 5, 2022 | 40,00 EUR | answered by Tatiana Herrmann
Dear tax advisor,
My name is Chloé Keck and I am currently facing the challenge of submitting my income tax return for the past year. Since I am not very familiar with tax matters, I am unsure if I have taken advantage of all possibilities for tax savings. That's why I am reaching out to you to find out what options are available to me to minimize my tax burden.
As a full-time employee, I earned a stable income last year, but I also had some expenses that may be tax deductible. These include professional development courses, work-related expenses, commuting costs, and donations to charitable organizations. However, I am not sure if and to what extent these expenses can be claimed for tax purposes.
Furthermore, I also earned capital gains last year, such as interest income from my savings account. Again, I am unsure of how these earnings should be treated for tax purposes and if there are ways to save on taxes.
Additionally, I recently got married, so I am wondering if there could be tax advantages through joint filing with my spouse. As we are both working, I am wondering how we can best optimize our tax return to benefit from tax savings.
Could you please outline specific opportunities for saving taxes in my income tax return? Are there specific expenses that I should definitely consider to reduce my tax burden? I would greatly appreciate your expert advice and tips on tax savings.
Thank you in advance.
Kind regards,
Chloé Keck
Dear Mrs. Keck,
Thank you for your inquiry and your interest in my expert advice on tax matters. I would be happy to assist you and show you the possibilities to minimize your tax burden and save taxes.
First of all, it is worth mentioning that you already have some expenses that could be tax-deductible. Further education related to your profession, work-related tools, commuting costs, and donations to charitable organizations are considered deductible expenses that you can claim in your income tax return. It is important to carefully collect and keep all receipts and proof of these expenses in case of an audit by the tax authorities.
Furthermore, capital income, such as interest income from your savings account, is usually subject to tax. You should ensure that the corresponding taxes have already been withheld by your bank. If not, you will need to declare and pay taxes on the capital income in your tax return. However, there are also ways to optimize the taxation of capital income, such as using the saver's allowance or offsetting losses from capital assets.
In terms of joint assessment with your spouse, there may indeed be tax advantages. Through joint assessment, you can, for example, benefit from the splitting tax rate, which often results in a lower tax burden. It is important to assess together with your spouse which option (individual assessment or joint assessment) is most advantageous for you in terms of taxes.
To optimize your income tax return and save taxes, I recommend seeking professional help from a tax advisor or tax assistance association. An expert can review all relevant expenses with you, show tax-optimized structuring options, and ensure that your tax return is correct and complete.
I hope that this information has been helpful to you. If you have any further questions or would like a more detailed consultation, I am at your disposal.
Best regards,
Tatiana Herrmann
