Tax tips at the end of the year: pay less, get more back

Clever taxpayers have allowances entered and the tax authorities participate in the costs for craftsmen. Volunteering also brings tax benefits.

Check whether your tax bracket still makes sense. You can apply for a change in tax class 2013 by November 30, 2013. You can change the tax bracket once a year.

An employee (married, a child under the age of 14) can register tax-free allowances on his 2014 income tax card and thus secure a higher net salary.

* Tax class III / 1, ** Church tax 9%, *** 30 km x 0.30 euros x 220 working days, **** Total costs 3, 600 euros, 2/3 of which are deductible as special expenses, i.e. 2, 400 euros

Photo: The house / income tax relief association HILO

Allowances

Have the tax office enter tax allowances for 2014 on your income tax card. Tax reductions include travel expenses to work, childcare costs and additional expenses for double housekeeping, as well as losses from renting out a property. As of January 2014, you will have a net monthly salary increase (see the calculation example on the left, click to enlarge).

Artisan

Homeowners and tenants can deduct 20 percent of the tax debt from the labor costs of a craftsman, up to a maximum of 1, 200 euros per year. If the invoice amount is higher, installment payments are possible - the invoice amount is then spread over two years. The Federal Finance Court has approved the tax bonus for handicraft services for new buildings and conversions under file number VI R 61/10, as long as the taxpayers keep their household in the property, explains the New Association of Wage Tax Assistance Associations (NVL).

Volunteering

Legislators have raised the maximum amounts for the trainer and volunteer fees to 2, 400 euros and 720 euros this year. They can be used anew every year. For active people in educational institutions or associations, it can therefore be worthwhile to conclude a contract quickly and pay before the end of the year.

Investment income

With an exemption order, you instruct your financial institution to credit investment income up to the amount of the saver's lump sum (from 801 euros per year) without deduction of the flat-rate tax. Children are also entitled to the allowances. Couples wishing to change from a joint exemption order (EUR 1, 602) to individual exemption orders (i.e. EUR 801 per year) in 2014 must do so by December 31, 2013.

Investors

In 2013, did you make profits selling securities at one bank and make losses at another? Then you have to have the loss certified by the one institute by December 15th. Only with this certificate can you offset the losses against the profits at the other institution in your income tax return. Caution should be exercised in the case of old losses from sales transactions from the years prior to 2009 that have not yet been offset: These losses must be offset against current sales subject to withholding tax at the latest in the 2013 assessment. The option will expire in 2014, the NVL emphasizes.