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 €1,051 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.

Claiming Technical Literature on Your Tax Return

Claiming 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 Valuable Assets and Investments

Taxing 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?

Claiming Tax Allowances on Your Tax Return

Claiming Tax Allowances on Your Tax Return

Applying for Wage Tax Reduction

Applying for Wage Tax Reduction

Renting and Leasing: An Overview of Deductible Costs

Renting and Leasing: An Overview of Deductible Costs

How Rental Income Is Taxed

How Rental Income Is Taxed

Deducting supplementary dental insurance

Deducting supplementary dental insurance

Deducting Insurance Costs from Your Taxes

Deducting 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

Save Taxes with the Income-Related Expenses Lump Sum

Save Taxes with the Income-Related Expenses Lump Sum

Tax Savings from Your Utility Bill!

Tax Savings from Your Utility Bill!

Tax return: Lump sum for exercise leaders (Übungsleiterpauschale)

Tax return: Lump sum for exercise leaders (Übungsleiterpauschale)

Filing Your Tax Return Electronically with Wundertax

Filing 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

Withholding Tax (Abgeltungsteuer) on Capital Gains

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

Income Tax Statements: Everything You Need to Know!

Income Tax Statements: Everything You Need to Know!

Tax Reduction for Tradespeople Expenses

Tax Reduction for Tradespeople Expenses

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)

Deduct household services from your taxes (Haushaltsnahe Dienstleistungen)

Deduct household services from your taxes (Haushaltsnahe Dienstleistungen)

Learn About the Tax Benefit Test (Günstigerprüfung)

Learn About the Tax Benefit Test (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)

When is it the right time to change tax classes? (Steuerklassenwechsel)

When is it the right time to change tax classes? (Steuerklassenwechsel)

What Does "Von der Steuer absetzen" Actually Mean?

What Does "Von der Steuer absetzen" Actually Mean?

Capital Accumulation Benefits in Tax Returns (vermögenswirksame Leistungen)

Capital Accumulation Benefits in Tax Returns (vermögenswirksame Leistungen)

The reasons why not everyone benefits from a tax refund (Steuererstattung)

The reasons why not everyone benefits from a tax refund (Steuererstattung)

Get Refunded with the Input Tax Deduction (Vorsteuerabzug)

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 the Employee Lump Sum Is All About (Arbeitnehmerpauschbetrag)

What the Employee Lump Sum Is All About (Arbeitnehmerpauschbetrag)

All you need to know about adding your pension insurance to your income tax returns

All you need to know about adding your pension insurance to your income tax returns

These Insurance Policies Are Tax-Advantaged (steuerbegünstige Versicherungen)

These Insurance Policies Are Tax-Advantaged (steuerbegünstige Versicherungen)

How Will My Taxable Income Be Calculated?

How Will My Taxable Income Be Calculated?