What's New for Your 2024 Taxes: A Guide
Tax Filing Details for 2024: Crucial Factors to Consider - 2024 Tax Returns Due: A Crucial Fact to Bear in Mind
Want to file your tax return for 2024 with ease? Let's help you navigate the changes and deadlines for a stress-free experience!
Set Your Alarm: When's the Deadline?
The 2024 tax deadline has had a few shifts in recent years. The latest date to submit your tax return is Thursday, July 31, 2025. However, if you're using a tax advisor or association, you've got more time – until April 30, 2026. Although, the tax office might demand an earlier submission for exceptional cases.
You can voluntarily file your taxes much later, up to four years after the tax year ends, like for tax year 2024, until December 31, 2028. And don't forget, you can file your 2021 return by the end of 2025, even though it's not mandatory.
Procrastination may cost you. Late filings result in a late fee of 0.25 percent of the assessed income tax (minimum 25 euros per month).
Don't Wait for Extensions
Deadline extensions are only granted in extreme cases, as long as reasons aren't self-inflicted. Reasons such as illness, traveling abroad, or missing documents might apply. Apply for an extension informally at your local tax office. The tax office will notify you of their decision and the new deadline, if applicable.
Who Needs to File?
Mandatory Filing
- Couples with tax classes 3/5 or 4 with a factor
- Employees with tax class 6
- Self-employed individuals with income from freelance activity or trade
- People receiving unemployment benefits or untaxed secondary income over 410 euros
- Pensioners with income exceeding the basic allowance of 11,784 euros
Filing voluntarily can save excess taxes paid, averaging around 1,100 euros per tax return.
Digital or Paper?
A quarter of taxpayers still file their tax returns in paper form, but digital submissions are becoming more common. Electronic filing is now the norm, with theuse of the free online Elster portal recommended. While sending forms by post is still possible for employees and pensioners without self-employment income, tax offices prioritize digital submissions.
What's New for 2024?
Increased Basic Allowance and Key Values
The federal government has introduced tax relief measures for the 2024 tax year, raising the basic allowance from 10,908 euros to 11,784 euros. Other key values, such as those triggering increased tax rates, have also increased accordingly.
Boosted Child Allowance
The child allowance increases by 600 euros to 6,612 euros for the 2024 tax year (3,306 euros per parent). You can also benefit from child benefits of 250 euros per child. The tax office assesses which option is more advantageous.
EU Member State Changes to Child Allowance and BEA Allowance
The child allowance and the BEA allowance (allowance for care, education, and training needs of children) will no longer be reduced if the child lives in an EU member state. This follows a ruling by the European Court of Justice (ECJ).
Increased Mini-Job Threshold
The mini-job threshold will increase to 538 euros per month for the 2024 tax year, based on the increase in the minimum wage to 12.41 euros per hour (2025: 12.82 euros).
Higher Moving Allowance
Relocating for professional reasons after February 29, 2024, may qualify you for increased moving allowances of 964 euros. For each additional household member, a flat rate of 643 euros can be claimed.
Expanded Tutoring Expenses
Tutoring expenses can now be claimed up to 1,286 euros.
Flood Relief Measures
Residents affected by the 2024 floods will receive various relief measures, including deferrals, special depreciation for replacement acquisitions, and simplified evidence for donations.
Corona and Ukraine Aid Donations
Donations for corona and Ukraine aid can be deducted as special expenses up to 20 percent of income.
Changing or Amending Tax Returns
If you need to make changes, use Form 1040X to amend your return, correcting errors or reporting changes in income, deductions, or credits from previously filed returns.
Extra Tips
- If you need more time to file, request an extension by the original deadline.
- Pay any owed taxes by the deadline to avoid penalties and interest, even if you file for an extension.
- File promptly if you're due a refund to minimize interest and penalties when taxes are owed.
Community aid schemes may offer personal-finance assistance to taxpayers who are struggling to meet their tax obligations due to unforeseen circumstances. For instance, aid could be provided for those affected by floods in the form of deferrals and special depreciation for replacement acquisitions. Additionally, donations for corona and Ukraine aid can be deducted as special expenses up to 20% of one's income, helping individuals manage their personal finances better.
