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Doing taxes in Germany sounds terrifying. The forms are in dense bureaucratic German, and the rules are famously complex. However, if you are a standard employee, filing a tax return (Steuererklärung) is highly recommended because the average refund is over €1,000!
Do You Have To File?
If you are a single employee in Tax Class 1 with one job and no extra income, you are usually not legally obligated to file. But you absolutely should, to get your overpaid taxes back.
You must file if you: received unemployment benefits (ALG I), are married using Tax Classes 3 and 5, are a freelancer, or received foreign income.
How to File (Without a Steuerberater)
Hiring a German tax advisor (Steuerberater) is expensive and often unnecessary for simple employees. Instead, use digital tools.
- ELSTER: The official government portal. It is completely free, but it is entirely in formal German and offers zero tips on how to save money. Not recommended for beginners.
- Tax Apps (Taxfix, Wundertax, SteuerGo): These are the lifesavers for expats. They are available in English, use a simple Q&A chat interface, and cost around €30-€40 (which you only pay when you submit, and the fee is tax-deductible next year!).
Top Things You Can Deduct
You can reduce your taxable income by declaring expenses (Werbungskosten). Common deductions include:
- Home Office: A flat rate (Home-Office-Pauschale) for days you worked from your kitchen table.
- Commuting: The Entfernungspauschale gives you back money for every kilometer you travel to work, regardless of whether you take the train, drive, or walk.
- Relocation Costs: If you moved to Germany for work, your flights and moving vans are often deductible!
- Work Equipment: Laptops, monitors, or specialized work clothes you bought yourself.