The employer can electronically access the (tax class, number of child allowances, feature for church tax deduction, allowances), employees must give their employer their tax identification number and their date of birth. The employee’s personal circumstances relevant for taxation are then automatically taken into account in the form of exemptions and lump-sum amounts (so-called lump sums) when deducting income tax.
Important: The wage tax, which is deducted from the gross wage by the employer, is usually calculated in such a way that it corresponds to the so-called annual income tax. This means that it is assumed that the employee receives his gross wage for a whole year.
Does the employee have to submit an income tax return in any case?
In many cases, the taxation procedure for the employee is completed with the tax deduction. He then does not have to submit a tax return.
For the employee, however, it can make sense to file a tax return after the end of the calendar year. The technical term for this is: to be assessed for income tax. The employee uses the opportunity to get back taxes paid.
In certain cases, however, there is an obligation to submit an income tax return. For example, if an allowance is taken into account as a wage tax deduction feature (exception: no obligation to submit an income tax return if only a lump sum for disabled people is noted as a wage tax deduction feature, or the annual wages from 2020: € 11,900 or € 22,600 if assessed together Spouses) or if, for example, wage tax has been withheld according to tax classes V or VI. The use of the tax return calculator is important there.
Why does the employer need the law?
These wage tax deduction features are an aid that makes it easier to tax individually and fairly. But they only do a rough sorting according to the citizens’ performance and resilience.
Who determines the wage tax deduction criteria?
The tax office in whose district you live is responsible for wage tax deduction features. If there are several apartments, the predominant stay is decisive.
For spouses with multiple domiciles, the tax office where the family mainly resides is responsible. However, this only applies if the spouses do not live permanently apart despite their different main residence.
How important is the tax bracket?
The tax class is particularly important for the amount of the wage tax deduction. The wage tax distinguishes between six tax brackets. There is also the so-called factor method for spouses. Among other things, different tax exemptions result from the respective tax class. With the exception of the tax class combination for spouses, there is no right to choose. The tax class is entered by the tax office as one of the wage tax characteristics. If spouses choose the factor method, tax class IV is entered together with the calculated factor.