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Old 27.06.2020, 11:58
natn natn is offline
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Re: Massive increase in tax due to filing a declaration

Thanks for the replies

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Also, there might be deductions that you can do - have you actually done your return ?

The other potential problem (been there, done that) is that one or both employers did not deduct Quellensteuer at the right level.

Are you actuall required to fill a tax return ? I thought that it's required if one income earner gets a salary package that is over 100K, not combined.

The tax return allows you to claim some deductions - that's why the tax-at-source rate is somewhat lower, because it compensates in some way for the fact that at-source you can't claim deductions.
We wouldn't have been required to to fill in a tax return, but we tried to claim some tax back with the simplified process (for 3rd pillar and commuting etc) but when they noticed we have savings over 100k they sent us a request for a full tax return. So that's what I'm trying to do using the official software (the same as the professionals use I believe).

Now claiming as many deductions as we can without having debts or dependents (including the max for third pillar) still leaves us paying more than before.

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Just make sure you are entering net income in the tax calculator after deducting at least 10k each for allowable deductions v Gross income for tax deducted by employer. That would account for a 30% difference
I made the mistake of entering gross income instead of net on my first attempt and got an even bigger shock

So from the feedback so far it sounds like previously when paying tax at source we were getting the benefit of the doubt on a lot of tax deductions, AND maybe also not paying the penalty for being a married couple. Maybe this could explain it but it... though it's all rather opaque.

I wish just one of the online articles about how to claim back a little tax had come with a warning about this!