In Germany, 28 million people filed their tax returns online
In 2020, a year Germans spent fighting the coronavirus pandemic, one important change occurred. According to Deutsche Welle, a record number of taxpayers used online services when filing their tax returns. According to the digital industry association Bitkom, 28 million Germans did so electronically. That is almost 20 percent more than the previous year. For such purposes, Germans use the online portal Elster.
And, as experts predict, this number will grow further, as many Germans have taken advantage of the German Kurzarbeit model. Its essence is that the state took over the payment of wages to employees for the period when the employer, due to the crisis situation, was temporarily unable to do so itself. Now employees must account for this period and submit a corresponding tax return.
During the pandemic, additional incentives were created for Germans. Now one can take advantage of tax reliefs provided to those who worked from home – the Homeoffice-Pauschale. A certain amount can be deducted: 5 euros per day, but a maximum of 600 euros per year. This tax bonus is available not only to those who set up a home office, but also to those who shared the kitchen table with their household members and worked in a far from professional environment.
And these are not the only tax reliefs provided under the pandemic. Many working Germans who commute to the office by train have BahnCard 50 or 100 cards. They allow purchasing train tickets at a favorable price – at any time, without waiting for special offers. If an employee mostly worked from home and could not use the card for its intended purpose, they can deduct all expenses related to its purchase.
Understanding all the intricacies of tax policy is not so easy, but Germans will have extra time for it. The deadline for filing the 2020 return can be extended by three months – until the end of October 2021. And for those who use a consultant's services, even later.