Ten tax exemptions you can benefit from
Preparing the tax return can be exhausting, but it becomes easier when using flat-rate deductions (Pauschalen) instead of submitting detailed receipts. This not only saves time but can also have a significant financial impact. Here are the top ten deductions as recommended by Lohnsteuerhilfe Bayern:
The basic exemption for employees (Werbungskostenpauschale) is automatically calculated at an amount of 1,230 euros, without the need to provide evidence. If work-related expenses exceed this amount, additional costs such as professional tools, specialized books, or training courses can be deducted. Other allowances are also included in this amount, such as distance allowances and home office exemptions.
The distance allowance (Entfernungspauschale) covers commuting to and from work. A deduction of 30 cents per kilometer is applied for the first 20 km, and 38 cents for each additional kilometer. This system is expected to be adjusted so that 38 cents will be calculated from the first kilometer in the future, regardless of the mode of transport. If public transport costs are higher, they can be fully deducted.
The home office allowance (Homeoffice-Pauschale) allows for a deduction of 6 euros for each day worked from home, up to 210 days a year, which amounts to 1,260 euros. Those who have an officially recognized office can instead deduct actual costs if they are higher.
The exemption for bank account management (Kontoführungspauschale) allows a deduction of 16 euros annually for the salary account, without the need for proof. Larger amounts must be proven.
Meal allowance during travel (Verpflegungspauschale) allows a deduction of 14 euros for business trips lasting more than 8 hours, and 28 euros for trips lasting more than 24 hours. The 14 euros is also applied for travel days to and from the destination. This exemption also applies when traveling for job interviews, professional relocations, or temporary living in two residences for up to 3 months. There are different amounts for international trips.
The professional relocation cost exemption (Umzugskostenpauschale) allows a deduction of 964 euros when moving for work, with an additional 643 euros for each additional family member. Actual costs such as broker fees or double rent can be deducted with proof.
The special expenses allowance (Sonderausgabenpauschbetrag) automatically deducts 36 euros for individuals or 72 euros for couples. Donations, church taxes, or insurance premiums can be entered as additional deductions.
The savings allowance (Sparerpauschbetrag) protects profits from interest and dividends from taxes up to 1,000 euros, or 2,000 euros for couples, provided there is a bank exemption order (Freistellungsauftrag).
The care allowance for a family member (Pflegepauschbetrag) ranges from 600 to 1,800 euros depending on the level of care and is granted to those who provide care for free. Information about the person being cared for must be provided in the tax declaration.
The exemption for persons with disabilities (Behindertenpauschbetrag) starts from 384 euros for mild disability cases (GdB 20) and goes up to 2,840 euros. Severe cases such as blindness or the need for intensive care are granted 7,400 euros. There is also a special mobility exemption of up to 4,500 euros if there are markers such as aG or Bl or H, and 900 euros if the GdB is at least 80 or 70 with the G symbol.
There are other ways to benefit from tax deductions as well. For example, some gardening services can be deducted under certain conditions, and there is even one box in the declaration that can lead to savings of up to 700 euros.