Income tax – the tax of the employed

• Definition, Explanation
• Tips, Checklist

If you are employed in a company or an organization with an employment contract and are paid an income, you must pay an income tax. This tax is monthly cut off your salary by the employer and directed to the revenue. The amount depends on your tax class, which in turn depends on your family status. You will get assigned a tax class in cooperation with your revenue office.

When you begin to work and get employed, you have to get an income tax card at your local tax office and hand it on to your employer, mostly the personnel department. If you expect losses or charges, e.g. by real estate, for the current year, it is advisable to apply for income tax abatement and to have the loss-submission filled into your income tax card. This way, you can reduce the monthly tax subtraction. For every year, you have to file a tax declaration in which you can enforce tax-exempt amounts or special burdens according to tax law, which results in an offset re-calculation against the already paid tax. The corresponding forms are usually sent to you by the revenue office, respective are available there. Nowadays, tax declaration can be done also via the internet.

• File your income tax declaration. In most cases, you can expect a payback
• If you have no special burdens, like disablement, children, real estate, it is not necessarily recommendable to employ a tax adviser. By means of the online tax declaration, tax software and supports on the internet you can save those casts
• Use the supports of the revenue office. Ask your official in charge in case of un-clarities
• Make direct contact with your official in charge at the revenue office, e.g. by handing in the declaration face to face. They can give you hints how to save some tax
• If you are paid some income abroad, you should inform yourself exactly about the corresponding tax regulations in advance. Again, the first place to ask is your revenue office