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.

Applying for Wage Tax Reduction

Applying for Wage Tax Reduction

How Rental Income Is Taxed

How Rental Income Is Taxed

Annual Taxation Allowances that are Available to Employees (Freibeträge)

Annual Taxation Allowances that are Available to Employees (Freibeträge)

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

Save Taxes with the Income-Related Expenses Lump Sum

Save Taxes with the Income-Related Expenses Lump Sum

Withholding Tax (Abgeltungsteuer) on Capital Gains

Withholding Tax (Abgeltungsteuer) on Capital Gains

Save Taxes with the Saver's Allowance

Save Taxes with the Saver's Allowance

Filing Your Tax Return Electronically with Wundertax

Filing Your Tax Return Electronically with Wundertax

ELStAM - What Does It Mean?

ELStAM - What Does It Mean?

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 Savings from Your Utility Bill!

Tax Savings from Your Utility Bill!

Church Tax on Your Tax Return

Church Tax on Your Tax Return

Tax Deductible Donations (Spenden)

Tax Deductible Donations (Spenden)

One-Fifth Method (Fünftelregelung) – Tax Savings!

One-Fifth Method (Fünftelregelung) – Tax Savings!

Tax return: Lump sum for exercise leaders (Übungsleiterpauschale)

Tax return: Lump sum for exercise leaders (Übungsleiterpauschale)

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)

Learn About the Tax Benefit Test (Günstigerprüfung)

Learn About the Tax Benefit Test (Günstigerprüfung)

What are Special Expenses (Sonderausgaben)?

What are Special Expenses (Sonderausgaben)?

What Does "Von der Steuer absetzen" Actually Mean?

What Does "Von der Steuer absetzen" Actually Mean?

What is an Employee Savings Allowance? (Arbeitnehmersparzulage)

What is an Employee Savings Allowance? (Arbeitnehmersparzulage)

Capital Accumulation Benefits in Tax Returns (vermögenswirksame Leistungen)

Capital Accumulation Benefits in Tax Returns (vermögenswirksame Leistungen)

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?

Everything worth knowing about social insurance (Sozialversicherung)

Everything worth knowing about social insurance (Sozialversicherung)

Tax Return: Renting a flat temporarily (Zwischenmiete)

Tax Return: Renting a flat temporarily (Zwischenmiete)

Tax Declaration Forms (Formulare der Steuererklärung)

Tax Declaration Forms (Formulare der Steuererklärung)

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

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

Who has to file a VAT reurn? (Umsatzsteuervoranmeldung)

Who has to file a VAT reurn? (Umsatzsteuervoranmeldung)

Operating expenses in the tax return (Betriebsausgaben)

Operating expenses in the tax return (Betriebsausgaben)

Retention periods for tax documentation (Aufbewahrungsfrist Steuererklärung)

Retention periods for tax documentation (Aufbewahrungsfrist Steuererklärung)

Honorary post in the tax declaration (Ehrenamt)

Honorary post in the tax declaration (Ehrenamt)

Deductions in the tax declaration (Abschreibungen)

Deductions in the tax declaration (Abschreibungen)

Renting and Leasing: An Overview of Deductible Costs

Renting and Leasing: An Overview of Deductible Costs

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

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

Do social benefits have to be stated in the tax return? (Sozialersatzleistungen - Hartz IV, ALG I, ALG II)

Do social benefits have to be stated in the tax return? (Sozialersatzleistungen - Hartz IV, ALG I, ALG II)

Deducting exceptional taxes (Außergewöhnliche Belastungen)

Deducting exceptional taxes (Außergewöhnliche Belastungen)

What is a voluntary health insurance? (Freiwillige Krankenversicherung)

What is a voluntary health insurance? (Freiwillige Krankenversicherung)

Specifying medical expenses in your tax return (Krankheitskosten)

Specifying medical expenses in your tax return (Krankheitskosten)

Deduct household services from your taxes (Haushaltsnahe Dienstleistungen)

Deduct household services from your taxes (Haushaltsnahe Dienstleistungen)