How is the income tax calculated and how can I optimize it?
March 9, 2023 | 45,00 EUR | answered by Anneliese Schaaf
Dear tax consultant,
My name is Uwe Hohenadel and I urgently need your help with calculating my income tax. I am an employee in a medium-sized company and received both my regular salary and income from a side job last year. Additionally, I also have income from rental and leasing.
I am concerned that I may have to pay too much income tax and would like to know how I can optimize this. I already have some expenses that I can deduct for tax purposes, such as business expenses, special expenses, and extraordinary burdens. However, I am not sure if I am taking advantage of all the opportunities for tax optimization.
Could you please explain to me how income tax is calculated and what options there are to reduce my tax burden? Are there specific tax planning opportunities that I could use in my case? What should I keep in mind for the next tax return to not miss out on any tax benefits?
I am looking forward to your support and thank you in advance for your help.
Best regards,
Uwe Hohenadel
Dear Mr. Hohenadel,
Thank you for your inquiry regarding the calculation of your income tax. As a tax advisor, I am happy to help you optimize your tax burden and take advantage of possible tax benefits.
Income tax is calculated based on your taxable income. This includes all earnings you have received in the respective year, which are then totaled and reduced by certain allowances and deductions. Income sources may include your regular salary, income from a side job, and income from rental properties.
To reduce your tax burden, it is important to consider all possible tax deductible items. These may include expenses such as business expenses, special expenses, and extraordinary burdens. Business expenses are costs related to your professional activities, such as transportation costs, work materials, or training expenses. Special expenses are expenses not necessarily related to your professional activities, such as donations or health insurance contributions. Extraordinary burdens are exceptional financial burdens, such as high medical or care costs.
Additionally, there are tax planning opportunities that you could utilize to minimize your tax burden. These could include choosing the right tax class, optimizing rental income for tax purposes, or strategically using tax allowances.
When preparing your next tax return, make sure to collect and correctly report all relevant receipts and evidence for your tax deductions and expenses. Be sure to maximize all tax opportunities and not miss out on any tax benefits.
I am available for consultation in my online office hours to address your individual questions and assist you with optimizing your income tax. Please do not hesitate to contact me if you need further assistance.
Best regards,
Anneliese Schaaf, Tax Advisor
