Do I have to declare my severance pay in my tax return, even if I have already paid tax on it?
October 14, 2023 | 40,00 EUR | answered by Edith Hartmann
Dear tax advisor,
my name is David Otten and I recently received a severance payment from my former employer. This severance payment has already been taxed and now I am wondering if I still need to include it in my tax return.
The severance payment was paid to me because my employment was terminated due to operational reasons. I have already submitted my tax return for the past year, but I did not separately declare the severance payment as it had already been taxed.
My concern now is that I may have made errors in my tax return and that the tax office could hold me accountable afterwards. I want to make sure that I do everything correctly and do not encounter any problems with the tax office.
Could you please explain to me if I still need to include the already taxed severance payment in my tax return and if so, how I can do this correctly? Are there any specific forms or attachments that I need to fill out for this?
Thank you in advance for your help and support.
Sincerely,
David Otten
Dear David Otten,
Thank you for your question regarding your severance payment and the correct declaration in your tax return. It is understandable that you are concerned and want to ensure that everything is correct to avoid problems with the tax office.
In principle, a severance payment, even if it has already been taxed, must be declared in the tax return. This is because the severance payment is included in the calculation of taxable income and therefore affects the amount of tax owed. Even if the severance payment has already been taxed, declaring it in the tax return may result in changes, such as the amount of taxes to be paid or possible tax refunds.
To correctly declare the already taxed severance payment in your tax return, there are specific forms and attachments intended for this purpose. Typically, you will need to fill out the "Anlage N" form for the income tax return. Here, you will enter the severance payment and also indicate that it has already been taxed. It may also be necessary to include an additional attachment to the "Anlage N" to provide further information about the severance payment.
It is important that you have all relevant information and documents regarding the severance payment ready to support your declaration in the tax return. If you are unsure how to correctly declare the severance payment, I recommend consulting an experienced tax advisor who can assist you in preparing your tax return.
I hope that my response helps you and that you now know how to correctly declare the severance payment in your tax return. If you have any further questions, please feel free to contact me.
Best regards,
Edith Hartmann
Tax Advisor
