Glossary of Tax Terms

It’s easy to get overwhelmed when confronted with filing your tax return. Nobody likes dealing with tons of paperwork and confusing bureaucratic terms. In reality, it’s easier than most people think - and we’re here to help!

Those who file voluntarily typically benefit the most from filing their taxes. In fact, most receive a tax refund of €1.063 euros on average, and if they don’t file, this refund is kept by the tax office (Finanzamt)!

We’ve made a glossary of all important tax terms to help you navigate the tricky technical jargon. From work equipment (Arbeitsmittel) to inheritance tax (Erbschaftsteuer) - all your questions will be answered here.

Save Taxes with the Income-Related Expenses Lump Sum

Save Taxes with the Income-Related Expenses Lump Sum

What is an annual payslip (Lohnsteuerbescheinigung)?

What is an annual payslip (Lohnsteuerbescheinigung)?

How rental income is taxed

How rental income is taxed

Tax reliefs 2022: An overview of the tax relief act

Tax reliefs 2022: An overview of the tax relief act

Deducting Political Party Donations from Your Taxes

Deducting Political Party Donations from Your Taxes

How Top Tax Rates are Handled in Germany

How Top Tax Rates are Handled in Germany

How to Claim Technical Literature on Your Tax Return

How to Claim Technical Literature on Your Tax Return

Can I Deduct Medications From My Tax Return?

Can I Deduct Medications From My Tax Return?

Loss Carryforward – How To Reclaim Your Losses

Loss Carryforward – How To Reclaim Your Losses

The Top 10 Strangest Taxes Worldwide

The Top 10 Strangest Taxes Worldwide

Cryptocurrencies in Your German Tax Return

Cryptocurrencies in Your German Tax Return

Insolvency Allowance: What is it and how is it taxed?

Insolvency Allowance: What is it and how is it taxed?

Late Payment Surcharges - Beware of Tax Debt!

Late Payment Surcharges - Beware of Tax Debt!

Taxing Your Valuable Assets and Investments

Taxing Your Valuable Assets and Investments

Double Tax Treaty and the 183-day Rule

Double Tax Treaty and the 183-day Rule

Maternity Benefits in Germany & How They Affect Your Taxes

Maternity Benefits in Germany & How They Affect Your Taxes

How are my retirement funds taxed?

How are my retirement funds taxed?

How to Claim Tax Allowances on Your Tax Return

How to Claim Tax Allowances on Your Tax Return

Applying for Wage Tax Reductions

Applying for Wage Tax Reductions

Renting and Leasing: An Overview of Deductible Costs

Renting and Leasing: An Overview of Deductible Costs

Deduct your supplementary dental insurance

Deduct your supplementary dental insurance

Deduct Insurance Costs from Your Taxes

Deduct Insurance Costs from Your Taxes

Informing the Tax Office about Inheritances & Valuable Gifts

Informing the Tax Office about Inheritances & Valuable Gifts

Church Tax on Your Tax Return

Church Tax on Your Tax Return

How Can I Save Taxes from My Utility Bill?

How Can I Save Taxes from My Utility Bill?

Tax return: Lump sum for exercise leaders (Übungsleiterpauschale)

Tax return: Lump sum for exercise leaders (Übungsleiterpauschale)

File Your Tax Return Electronically with Wundertax

File Your Tax Return Electronically with Wundertax

Save Taxes with the Saver's Allowance

Save Taxes with the Saver's Allowance

Withholding Tax (Abgeltungsteuer) on Capital Gains: All You Need to Know

Withholding Tax (Abgeltungsteuer) on Capital Gains: All You Need to Know

ELStAM - What Does It Mean?

ELStAM - What Does It Mean?

One-Fifth Method (Fünftelregelung) – Tax Savings!

One-Fifth Method (Fünftelregelung) – Tax Savings!

Your eTIN Number

Your eTIN Number

Tax Reduction for Tradespeople Expenses: How to

Tax Reduction for Tradespeople Expenses: How to

Tax Deductible Donations (Spenden)

Tax Deductible Donations (Spenden)

Who has to pay business tax and when is it due? (Gewerbesteuer)

Who has to pay business tax and when is it due? (Gewerbesteuer)

How to deduct household services from your taxes (Haushaltsnahe Dienstleistungen)

How to deduct household services from your taxes (Haushaltsnahe Dienstleistungen)

What is the beneficial tax check? (Günstigerprüfung)

What is the beneficial tax check? (Günstigerprüfung)

What is an Employee Savings Allowance? (Arbeitnehmersparzulage)

What is an Employee Savings Allowance? (Arbeitnehmersparzulage)

These are the most important flat-rates (Pauschalen in der Steuererklärung)

These are the most important flat-rates (Pauschalen in der Steuererklärung)

What are Special Expenses (Sonderausgaben)?

What are Special Expenses (Sonderausgaben)?

Clarify Tax Matters with an Informal Request (Formloser Antrag)

Clarify Tax Matters with an Informal Request (Formloser Antrag)

Swapping Tax Classes: Which is right for me?

Swapping Tax Classes: Which is right for me?

What does it mean to claim something on my tax return?

What does it mean to claim something on my tax return?

Capital Accumulation Benefits in Tax Returns (vermögenswirksame Leistungen)

Capital Accumulation Benefits in Tax Returns (vermögenswirksame Leistungen)

Why doesn't everyone benefit from a tax refund? (Steuererstattung)

Why doesn't everyone benefit from a tax refund? (Steuererstattung)

How to Get Refunded with the Input Tax Deduction (Vorsteuerabzug)

How to Get Refunded with the Input Tax Deduction (Vorsteuerabzug)

Can the costs of naturalization be deducted for tax purposes? (Einbürgerung)

Can the costs of naturalization be deducted for tax purposes? (Einbürgerung)

What is the Employee Lump Sum? (Arbeitnehmerpauschbetrag)

What is the Employee Lump Sum? (Arbeitnehmerpauschbetrag)