reduced taxed income
August 2, 2012 | 30,00 EUR | answered by Dr. Yanqiong Bolik
Hello,
In 2011, I received a severance payment of 25,000 euros, which is listed on my income tax certificate in line 10. In line 11, the withheld income tax is 10,500 euros, and there is a solidarity surcharge of 577.50 euros in line 12.
These deductions do not seem "reduced" to me! What do I need to do in my income tax return to get as much of this amount back as possible? The WISO program keeps telling me that I haven't defined any expenses for this amount, but I didn't have any expenses. I just don't understand why I was taxed so heavily on this amount, and how I can get some of it back.
Dear inquirer,
Thank you for your inquiry, which I would like to answer considering your contribution and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result.
When calculating the income tax for the severance payment, the current annual salary must be taken into account. If your annual salary has been very high, it may have already happened that the income tax in this amount must be withheld for the severance payment.
Income tax is an advance payment of your income tax debt for the relevant calendar year. If the withheld income tax is higher than the assessed tax debt, the difference will be refunded after the assessment. In order to claim back any overpaid income tax, you should specify all expenses related to the income, deductible special expenses, and other deductible expenses in your tax return. These reduce the taxable income and thus the income tax. It should be noted that the severance payment is subject to reduced taxation. This happens when the amount of 25,000 EUR is entered in Annex N, line 17, cell 166. If the conditions are met, this amount will be taxed at a reduced rate.
In summary, you can only reclaim any overpaid income tax after the tax assessment by refund.
I hope I could be of assistance to you.
If there are still any uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
