When it comes to married couples, there are instances when filing separate tax returns might be advantageous.
Ready, set, tax! July 31, 2025 is the Deadline for Many Germans
Running out of time? That's right, for over 20 million taxpayers across Germany, the deadline to submit their 2024 tax returns is fast approaching - a month earlier than the previous year. But before you rush off, consider the age-old question: Should married couples file joint or separate tax returns?
According to the consumer advice portal Finanztip, there might be significant benefits to choosing separate tax returns, especially in the following situations:
- Parental Allowance: If you're receiving parental allowance, it could make a difference which assessment method you choose.
- Severance Pay: Couples who receive severance pay might find themselves better off filing separate returns.
- Losses: If you or your partner have incurred substantial losses, filing separately can save you some coin.
- Short-time Work Allowance: If one or both partners receive short-time work allowance, it's worth considering separate returns.
- High Medical Costs: High medical costs can impact your tax liabilities. In some cases, filing separately may help lower your overall bill.
- Foreign Income: If you've got foreign income, it's crucial to consider how this might affect your overall tax situation, and whether filing separately could be beneficial.
- Two High Earners: Couples with two high earners might find it advantageous to file separate returns.
- Different Religious Affiliations: If you and your partner have different religious affiliations, you might need to factor in the additional church tax when deciding whether to file separate returns.
Now, it's important to note that joint assessment is usually the more tax-efficient choice - but, as Finanztip points out, it's always worth considering the individual assessment option, especially when the factors listed above come into play.
Don't worry about number-crunching and tax class combinations - tax software can help make the decision simpler. Couples can use various programs like Wundertax, SteuerGo, or WISO Steuer to figure out if individual or joint assessment is the better option.
Just keep in mind, the tax office doesn't automatically check whether joint assessment is the most beneficial choice for you. Defaulting to joint assessment is the norm. If you and your partner decide to file separate returns, don't forget to tick the box for individual assessment to avoid any confusion.
On average, according to the Federal Statistical Office, taxpayers who submit a tax return receive a refund of approximately 1,172 euros. So, take your time, consider your options, and make the best decision for your financial future. Good luck, and happy tax-ing!
In the context of personal-finance and the approaching tax deadline, if you or your partner have certain situations like receiving parental allowance, severance pay, high medical costs, foreign income, or are two high earners, it might be beneficial to file separate tax returns. However, it's important to remember that the default assessment is usually joint, and using tax software like Wundertax, SteuerGo, or WISO Steuer can help determine if individual or joint assessment is more advantageous for you.
