What do I need to consider when filing my tax return as a self-employed individual?
July 15, 2022 | 40,00 EUR | answered by Wolfgang Stricker
Dear tax consultant,
my name is Jonas Ehrig and I am a self-employed craftsman. In recent years, I have always done my tax return myself, but this year I am unsure if I am doing everything correctly. I have heard that there are specific things that self-employed individuals need to consider, and I want to make sure that I do not make any mistakes and take advantage of all possible tax benefits.
Currently, I have income from my self-employment, but also incur expenses for materials, tools, trips to construction sites, and similar. Additionally, I have set up a home office as I do some of my administrative work from home. I am unsure which of these expenses I can claim in my tax return and how best to document them.
My biggest concern is that I might overlook something important and end up having to pay tax arrears or even face legal consequences. I would like to submit my tax return as accurately as possible to avoid getting into trouble.
Could you please explain to me what specific aspects I need to consider as a self-employed individual when completing my tax return? What expenses can I deduct and how should I document them? Are there specific forms or attachments that I need to fill out as a self-employed individual? I would appreciate concrete tips and recommendations to prepare my tax return optimally.
Thank you in advance for your help.
Best regards,
Jonas Ehrig
Dear Mr. Ehrig,
Thank you for your inquiry regarding your tax return as a self-employed craftsman. It is understandable that you are uncertain and want to ensure that your tax return is correct and that you can take advantage of all possible tax benefits. As a tax advisor, I would like to help you prepare your tax return optimally.
As a self-employed individual, there are indeed special aspects that you should consider when filing your tax return. First and foremost, it is important that you accurately report all income from your self-employment as well as all expenses. Deductible expenses include material costs, tools, travel to construction sites, rent for your home office, office supplies, insurance, further education, telephone and internet costs, advertising expenses, and much more. These expenses reduce your profit and therefore your tax burden.
To properly document your expenses, I recommend that you carefully keep all receipts and invoices. You should file these receipts neatly in a file folder and keep a list where you record all expenses. This way, you have all documents readily available when preparing your tax return.
As a self-employed individual, you must also fill out the "Anlage EÜR" (income-expenditure statement) in addition to the regular income tax return. In this attachment, you report your income and expenses from your self-employment. If you have employees, you must also fill out the "Anlage G" (trade tax return). Additionally, you should check if you can take advantage of the small business regulation to be exempt from sales tax.
I hope this information helps you prepare your tax return as a self-employed individual. If you have any further questions or need assistance, I am happy to help.
Best regards,
Wolfgang Stricker
