Anyone who makes this mistake in the tax reconciliation process must pay the price.
As the end of the year approaches, employees in Austria face important deadlines for tax settlements, which give them the opportunity to receive refunds from the tax office. Experts warn that mistakes or early submissions may lead to refunds or loss of deductions.
The recent updates include remote work benefits. Employees can receive a tax-free allowance of up to 300 euros in 2025 for working outside the home, such as working in cafes or co-working spaces, with a maximum of 3 euros per day for remote work. Any unused allowance of less than 3 euros per day can be claimed as income-related expenses if the home office deduction is not utilized.
Expenses for comfortable home office furniture can be deducted up to 300 euros, provided that the employee works from home or any other remote work location for at least 26 days. Expenses exceeding this amount will automatically be carried over to 2026 if the remote work condition is met. Previous carryovers from 2024 cannot be claimed again in 2025.
Employees can deduct various expenses in their assessment, including training costs, donations, voluntary contributions to pensions, and exceptional expenses such as medical bills, disability costs, or external vocational training for children. These deductions must be paid by December 31, 2025, to be counted in the 2025 assessment. Mandatory assessments apply to those with an annual income exceeding €14,448 or those with significant taxable income.
Common mistakes include submitting tax settlements early, especially for employees with multiple employers or incomplete salary data. Family allowance applications are also a frequent source of errors; if both parents have low income, the effectiveness of the allowance may be limited. Employees are advised to carefully review their entitlements via FinanzOnline or wait until March 2026 to avoid mistakes.