Do you want to file your tax return and were on short-time work (Kurzarbeit) during the tax year? We have summarised what you need to know and how you can declare short-time work in the Taxfix app.
- When do I receive short-time work benefits?
- Am I obliged to file a tax return due to short-time work?
- Do I have to pay back taxes because of short-time work or do I get money back?
- How can I enter the short-time work benefits in the app?
When do I receive short-time work benefits?
You are on short-time work if your employer reduces or completely suspends your regular working hours for a certain period of time. You then receive a wage replacement benefit: short-time work benefits (Kurzarbeitergeld).
Am I obliged to file a tax return due to short-time work?
If you receive wage replacement benefits, you are obliged to file a tax return if your total annual income from wage replacement benefits exceeds 410 euros.
This also applies in the case of short-time work: If you have received more than 410 euros in short-time work benefits, you are obliged to file a tax return. It does not matter whether you were on short-time work at 10%, 50% or 100%.
Your tax return must then be submitted to the tax office by 31 July of the following year.
Do I have to pay back taxes because of short-time work or do I get money back?
Short-time work benefits are a wage replacement benefit and subject to progression.
As a wage replacement benefit, you do not have to pay taxes on the short-time work benefits themselves, but the progression cause can lead to your tax rate being raised by the tax office.
If you were on short-time work for 50%, you received 50% of your regular salary from your employer. Your employer has been reimbursed by the state for the short-time work benefits. You have to pay income tax on the 50% salary. Let's assume that your income tax rate is 10%. Your employer therefore pays this 10% of your half salary in advance to the tax office as income tax. Now, at the end of the year, the tax office sees that you have not only received half your salary, but also the short-time work benefits. If you earn more, you pay more tax, so the tax office raises your tax rate to 12%. However, your employer has only paid 10% of half your salary to the authorities in advance. Therefore, you may have to pay something in addition. You do not pay tax on the short-time work benefits, but you pay more tax on your salary.
Whether you actually have to pay back tax or get a refund depends on other factors. If you were on short-time work for only a short time, your tax rate may not increase, or it may increase so little that it makes little difference in the end. So it's quite possible that there will be no additional payment.
With Taxfix, you can easily understand the impact of short-time work benefits on your tax result: After answering all the questions, we show you your estimated tax calculation.
How can I enter the short-time work benefits in the app?
Short-time work benefits are entered in line 15 of your annual payslip.
In our app, you simply enter it in the "Income" category as part of your annual payslip. If you enter a value in line 15, a question opens asking for the exact type of benefit you received. Theoretically, several types of benefits can be recorded in line 15, so you will be asked explicitly.