Can You Earn Up to 800€ in Germany Without Reporting It for Taxation?

Question from jon, Can You Earn Up to 800€ in Germany Without Reporting It for Taxation?

Answer from AI:

In Germany, as in many other countries, all income must generally be reported for tax purposes. This includes income from employment, self-employment, rental income, and other sources. However, there are certain exceptions and allowances that may apply.

Basic Allowance for Income Tax

In Germany, there is a basic tax-free allowance, known as the “Grundfreibetrag”. As of 2021, this allowance is set at 9,744€ for single taxpayers and 19,488€ for married couples filing jointly. This means that if your total income in a year is less than this amount, you will not have to pay income tax. However, this does not mean that you do not have to report this income. All income should be reported to the tax authorities, even if it falls below the basic allowance.

Mini-Jobs and Marginal Employment

Germany has a special category of employment known as “mini-jobs” or “marginal employment”. If you earn up to 450€ per month (or 5,400€ per year) from a mini-job, this income is generally tax-free. However, it is the employer’s responsibility to pay a flat-rate tax on this income. Again, this income should still be reported to the tax authorities.

When to Consult a Legal Professional

If you have any doubts about your tax obligations, it is always a good idea to consult with a tax professional. They can provide personalized advice based on your specific circumstances. This is particularly important if you have multiple sources of income, if you are self-employed, or if you have other complex tax situations.

Useful Resources

• The Federal Ministry of Finance provides information on tax laws and regulations in Germany.
• The Federal Central Tax Office offers a range of online services and resources for taxpayers.

In conclusion, while there are certain allowances and exceptions that may mean you do not have to pay tax on small amounts of income, all income should generally be reported to the tax authorities in Germany. Always consult with a tax professional if you are unsure about your obligations.