The financial burdens have increased for many this year. There are a number of tax reliefs for 2023. The key changes for the 2023 tax year are summarized below. Almost everyone benefits from some, while certain groups such as home office workers or parents benefit from others.
Key changes for the 2023 tax year:
The annual tax-free subsistence level will increase by EUR 561 to EUR 10,908 in 2023. For couples it is double the amount. No income tax has to be paid up to this annual income (after deduction of income-related expenses, special expenses, etc.). The other key values of the tax rate are also shifting, so that most citizens have more net than gross. The top tax rate of 42 percent will therefore only apply in 2023 from a taxable income of 62,810 euros (previously 58,597 euros). Only the wealth tax of 45 percent applies unchanged from an amount of 277,826 euros.
The employee lump sum, usually called income-related expenses, increases to 1230 euros in 2023. Retroactive to January 1, 2022, it has already been increased from 1,000 to 1,200 euros. The tax authorities deduct the flat-rate amount from employees at least and without any proof as a tax reduction. As always, anyone who has higher work-related expenses (commuting to work, work equipment, home office, etc.) can claim these in their tax return.
The home office flat rate is being expanded: Up to now, you can deduct 5 euros from your tax for each home office day, and only for a maximum of 120 days. In 2023 you can deduct 6 euros per day for up to 210 days. The maximum possible amount increases from 600 to 1260 euros. You can also get the home office flat rate if you don’t have an extra office. Anyone who does not have a workplace in the company (e.g. teachers) can even apply a home office flat rate and distance flat rate for the same day - everyone else only either or.
If you use an extra room as a study, you can (instead of the home office flat rate) deduct all costs incurred for the study, provided that this is the focus of your professional activity. There is no upper limit for this. New from 2023: Instead of the actual costs, you can also use an annual flat rate of up to 1260 euros - but only proportionately for the months in which the study was the focus of the activity. Office and home office costs are part of the income-related expenses.
The tax-free allowance for savers will increase in 2023 for singles from 801 euros to 1000 euros and for couples from 1602 to 2000 euros. Up to this amount, capital gains such as interest, dividends and profits from the sale of securities are tax-free. With an exemption order from the bank, you can prevent taxes from being paid below these thresholds. Anyone who issues exemption orders from several institutions must ensure that they do not exceed the maximum amount in total. If you do nothing, existing exemption orders will be increased as a percentage.
Retrospectively for 2022, it will be possible in the future to offset losses from one's own custody account against gains from the custody account of the jointly assessed spouse directly in the tax return. This means that in future it will no longer be necessary to apply for a loss certificate from the bank (deadline: December 15).
From January 1, 2023, the state will pay 250 euros per month for each child. So far, there is 219 euros each for the first and second child, 225 euros for the third and only 250 euros for each additional child. The child tax allowance also increases by EUR 404 to EUR 8,952 (including childcare allowance). The child allowance is only taken into account by the tax authorities if it exceeds the child benefit payments (cheaper test), you cannot get both. In addition, the child supplement for single parents and families with low incomes, which is currently EUR 229, will also increase to up to EUR 250 per month on January 1, 2023.
From 2023, single parents will also benefit from a higher tax credit. The lump sum increases by 252 euros to 4260 euros for a child. For each additional child, 240 euros are added.
From 2023, parents will also benefit from a higher training allowance: it will increase from 924 to 1200 euros per year. Parents can deduct this amount in their tax return as a flat-rate cost for supporting their child in education. The training allowance applies to an adult child who is in vocational training and no longer lives at home.
Retroactive to January 1, 2022, income tax will no longer apply to photovoltaic systems on single-family homes and commercial properties with an output of up to 30 kWp. This applies to both feed-in and self-use. In multi-family houses and residential buildings with a commercial component, PV systems up to 15 kWp per residential and commercial unit are tax-free (maximum 100 kWp). In addition, the sales tax on the purchase of such PV systems will be completely eliminated in 2023.
From January 1st, 2023, pension contributions paid are fully deductible as special expenses. This step, originally planned for 2025, will be brought forward. For 2022, the maximum limit for deductibility is still 94 percent of the payments.
The basic pension surcharge will be tax-free retrospectively from 2021. The supplement is given to retirees who have paid in for many years but only get little out of it because of low earnings.
Inheriting and giving away real estate may become more expensive from 2023. The reason for this are new rules for calculating the value of real estate, which mean that allowances are exhausted more quickly. For many cases of single-family houses and condominiums, however, nothing will change.
Sources: Federal Ministry of Finance / United Income Tax Assistance / Steuertipps.de