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The deadline to file the income tax return for 2023 was 2 Sept 2024. If you were required to file the tax and didn't do so by this date, you can face sanctions from the tax office. However, as not much time has passed since the deadline, you can still avoid penalties.

Who must file an income tax return in Germany?

You are legally required to file a tax return if you fall into one of the following categories.

• You are in tax class 3/5, 4/4, or 6.
• You are self-employed
• You have income from other than employment.
• You had income on which you didn't pay tax in advance, such as rental income.
• You received tax-free wage replacement benefits, such as unemployment benefits, sickness benefits, etc.

This is not an exhaustive list, and there are other scenarios where filing a tax return is mandatory. So, check if you are required to file an income tax return before you stress about the missed deadline.

How much is the penalty for missing the deadline?

The fine is 0.25% of the tax due. However, at least 25€ per month for every month that you submit your tax late. This is called the late payment surcharge.

So, even if you don't owe the tax office any tax, you still must pay a 25€ per month fine for late filing. However, the tax office usually waives the fine for people who are late for the first time.

However, if you file after 2 June 2025, the tax office can no longer waive the fine. You'll end up paying at least 250€ penality.

What can happen if you don't file the tax return at all?

Here is what will happen if you don’t submit the tax return.

• The tax office sends you a letter to file your tax returns within a deadline. If you don't do it by this deadline, you can expect hefty fines.
• The tax office can impose a penalty in addition to the late payment surcharge.
• If you still don't file a tax return, the tax office will estimate your taxable income and calculate the tax amount you must pay. Usually, the calculation by the tax office is worse than if you file the income tax yourself. Of course, you still pay the "late payment surcharge" and "penalty" for not filing the tax.
• You may also have to pay "late payment interest" of 0.15% per month on your tax amount due. For the 2023 tax year, this interest will start to accrue from July 1, 2025.

How high is the penalty for not filing the income tax?

• For first-timers: between 100€ and 500€.
• If it is not the first time and you are not cooperative, up to 25,000€.

How can you avoid paying fines to the tax office?

• File the tax return as soon as possible. As I said earlier, the tax office usually waives the fine for individuals who are late for the first time. The easiest way to file the tax return is using tax software. We find Wundertax*, SteuerGo*, andSmartsteuer* among the best tax software in Germany.
• Get help from a tax advisor: The deadline extends to 2 June 2025 if you file your income tax via a tax advisor. This way, you avoid paying any penalties. However, filing an income tax using tax software is still cheaper than a tax advisor. Tax advisors charge you based on your income. However, you can expect to pay at least 400€ for their services. So, even if you end up paying a fine, it'll only be a 25€ surcharge for a month’s delay.

Visualization of the week

Loosely speaking, around 95% of the coverage of all the public health insurance companies is the same. It's because the coverage public insurers must provide is regulated by law. Thus, it makes sense to save money by switching to a cheaper public health insurance.

We find TK the best public health insurance provider for expats. It offers its website, mobile app, and customer support in English. You can register or switch to TK online here.

Here are some examples of how much you can save by switching to TK. We assume you earn more than 5200€ gross per month and

• are insured with KKH: 11291€ per annum
• are insured with Barmer: 614€ per annum
• are insured with AOK Bayern: 236€ per annum

You can calculate your savings potential using our public health insurance cost calculator.

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