What is an annual payslip (‘Lohnsteuerbescheinigung’)?
At the end of a calendar year or at the end of an employment contract, your employer has to issue an annual payslip (‘Lohnsteuerbescheinigung’). This documents includes the following information, among others
- Duration of employment
- Withheld wage tax, solidarity surcharge and church tax
- Deducted short-time allowance, bad weather allowance, winter allowance
- Number of child allowances
The annual payslip should not be confused with your monthly payslip. Printed at the top of your annual payslip you will find the year which the document refers to.
When do I get my annual payslip?
Usually you receive your annual payslip automatically from your employer by February of the following year. This document includes your wage tax contributions. If you ended your employment with an employer in the course of the year, then your employer will issue you with an annual payslip at the end of the contract.
Entering data from annual payslip
The annual payslip is a core part of calculating your tax refund. You can enter the information on this document in three different ways.
You can choose whether you want to take a photo of the annual payslip, to import the data, or to enter the data manually.
The easiest way is to take a photo. The app automatically imports the relevant information.
How should I take a photo of my annual payslip?
If you want to take a photo of your annual payslip, make sure that the document is placed on a dark background and is well lit. Also make sure that there are no other documents visible in the photo. Grid lines can help you position the camera correctly. After taking the picture your photo will be uploaded and the data imported into the app. Please check the data has been imported correctly.
The data could not be read from my photo. What should I do?
Picture quality is decisive in whether the data can be read from your annual payslip and imported into the app. Make sure the text is sharp and in focus and that the document is placed on a dark background and no other documents are visible. If there are problems with the readability you will receive a warning from the app. In this case repeat the steps following the advice. Alternatively you can enter the data manually.
Results of tax calculation tax refund
In many cases you may be owed a tax refund due to paying too much in taxes. This amount is payed out to you by the tax office when you file a tax return. If it is less than 50 euros, sending your tax return to the tax office is free of charge.
Additional tax payment
In some cases, you may have to pay additional tax. In this case Taxfix does not charge any fees for sending your tax return to the tax office.
If your costs exceeded your income, then you’ve made a loss for this tax year. You can carry this loss over into next year with a loss carryforward. This means that you will have to pay less tax in future years. In this case sending your tax return to the tax office is free of charge.
Loss carryforward combined with tax refund or additional payment
In some cases it is possible that you have a loss carryforward and at the same time either receive a tax refund or have to pay additional taxes. The app will show you the result of the tax calculation and whether you will be charged for submitting your tax return.
Can I choose to file my tax return voluntarily?
In many cases you can choose to file your tax return voluntarily. This is beneficial when you expect a tax refund. However, there are some cases where you are legally obliged to submit your tax return:
- You belong to tax class III, IV with income ratio procedure (‘Faktorverfahren’), V, or VI.
- You have received wage replacement benefits of more than 410 euros.
- You have received more than 410 euros in supplementary income.
- You have tax free allowances on your annual payslip.
- You have a loss carryforward from the previous year.
- You run a business, work as a freelancer or are self-employed.
As a result of the tax calculation I can make use of a loss carryforward. What does this mean?
If your costs exceeded your income, then you’ve made a loss for this tax year. You can carry this loss over into next year with a loss carryforward. This means that you will have to pay less tax in future years.
In order to make use of this tax bonus, you have to send a tax return to the tax office. You can do this directly from within the Taxfix app. You will then receive a statement from the tax office acknowledging this loss carryforward.
With your next tax return, your taxes liable will be offset by the losses carried forward. This means you pay less tax. The tax office keeps a record of this amount and adjusts this amount automatically.