If the total taxable income is below the basic tax allowance, a so-called non-assessment decision (NV) can be applied for at the tax office. This is understood to be an internal administrative note from the tax authority that an assessment for the taxpayer is not carried out according to the available information. If the non-assessment decision is accompanied by information on legal remedies, it will usually be a notice of exemption or the rejection of an application for tax assessment. These are tax assessments for which stricter procedural rules apply. In particular, if the couple’s income situation changes due to the death of one spouse, the disposition can be revoked and the tax return period can be revived.
Assessment for income tax
In all other cases, an assessment is made. It is an administrative procedure of the responsible tax authority for the purpose of determining the tax base and determining the tax liability through a tax assessment.
Income tax assessment requires the participation of the taxpayer, which primarily consists of the obligation to submit a tax return. A tax return must also be submitted if a remaining loss deduction has been determined at the end of the previous assessment period. If the spouses are assessed together, they must submit a joint tax return; In the case of an individual assessment, each of the spouses must submit a tax return. The use of the tax return calculator is important there.
What is the difference between wage tax and income tax?
Both terms mean the same thing in parts. Income tax is a sub-term of income tax.
Wage tax: Wage tax is the tax that an employee pays on his wages. The employer deducts it directly from the wages and transfers it to the tax office (so-called source deduction). In other words: wage tax is the income tax deducted directly from wages on income from employment.
Income tax: Income tax also includes the taxation of all other types of income such as income from self-employed work, from commercial operations, capital assets, pensions, etc.
How does the wage tax deduction work?
The employer must withhold wage tax on every wage payment and pay it to the tax office. He usually determines the amount of tax based on the tax rate. The employee’s individual tax characteristics, such as marital status, number of children and church tax deduction, play an important role.
Conclusion
Employers can electronically access these employee tax information required for wage tax deduction directly from the Federal Central Tax Office. This data retrieval procedure is called the tax procedure. It stands for electronic income tax deduction characteristics. Only in a few exceptional cases do the tax offices issue paper certificates for wage tax deduction, e.g. if the data stored in the database of the Federal Central Tax Office do not correspond to the employee’s actual tax-relevant circumstances and this problem cannot be solved quickly. In some cases, wage tax can also be settled with flat tax rates, for example for mini and temporary jobs.
