When taxes on part-time jobs are due

Rüdesheim – The summer holidays will start soon. Then again many students will improve their pocket money with a side job. However, what should not be forgotten: For some activities, taxes are due.


Picture: Money 

A new laptop, the expensive brand leather jacket or a weekend trip to London. For investments such as these, students and students often lack resources. If the parents are not willing or able to jump into the breach, it means earning money. Even faster than with a mini-job on the side is that, if you work for a long time during the holidays. In addition to age-related employment regulations – such as the fact that under-13-year-olds are not allowed to work at all and 13- to 15-year-olds are only allowed to do light temporary work for two hours a day – tax and social security legislation must also be considered.

Exceptions to the tax and social security obligation

“As a rule, you are always subject to tax and social security obligations as soon as you work, and that also applies to pupils and students,” explains Sonja Prechtner from the Hessian tax consultants association. An exception are minor occupations whose earnings do not exceed 400 euros per month, ie mini-jobs and short-term employment. “This refers to activities that are not carried out professionally and last no longer than two months or 50 days a year”. It is not necessary to have your own health insurance for a mini-job.

Anyone who works short-term is not tied to a merit limit, unlike the mini-job. Nevertheless, he does not have to pay any social security contributions. And usually also no taxes: “If someone does not work for more than 18 days at a time and earns on average not more than 62 euros per day, there is the possibility that the employer pays the wage tax at a flat rate of 25 percent,” explains Prechtner.

Employment tax: Basic allowance of 8004 euros annually

If the short-term employment takes longer, it means working on income tax card. But that does not mean that really money goes to the Treasury. “Only from a gross earnings of about 900 euros a month is payroll tax payable at all”, emphasizes Anita Käding of the Taxpayers’ Federation with regard to the tax class I, in which the bulk of students and students is assessed.

And even if you implement more monthly and thus tax deductions, you can get them back at the end of the year with the income tax return. Either in full or at least in parts. “As long as the annual income is below the basic allowance of 8004 euros, everything will be refunded,” said Rudolf Gramlich of the wage and income tax help ring Germany. As vacation jobbers did not earn more than 2500 euros per month, even with a well-endowed job, this is almost always the case. Even if they worked for more than 50 days a year.

Retrieve money with the tax return

“One has to keep in mind that, just like all other employees, pupils and students have the opportunity to claim certain expenses in their tax returns,” explains Prechtner. These include, for example, advertising costs. “These are anyway with a lump sum of 1000 € are taken into account and they must be listed in the tax return, only if they are above.” Thanks to this possibility, an annual gross income of around 10,000 euros is ultimately still in the income tax-free area. “And according to experience, that much is earned as good as no student or student,” says Gramlich.

Why an income tax return on earnings above the basic allowance is important, so it is obvious. But she should also do, if only one or two months on Lohnsteuerkarte jobbt and thereby above mentioned monthly exemption limit of 900 euros. “When calculating the amount of tax, it is assumed that the students, who are actually only temporary employees with their summer job, achieve an equal income throughout the year,” explains Käding. Since this is not the case, income tax deduction may lead to overpaying taxes. “And a refund can only be obtained by filing the tax return,” explains Gramlich.

Apart from that, holiday jobbers should add a few other points to their to-do list. In the case of short-term employment, for example, they should make sure that the employer registers them as being free of social insurance. Otherwise, social security contributions will be due. “And for a job below the 18-day limit, it’s important to clarify whether it is not more profitable to work on the income tax card instead of letting the employer deduct the tax base,” says Käding. Because too much paid can not be retrieved in the case of lump sum.

Wage tax card from paper still necessary

Since the fully electronic tax accounting is still not possible, you must continue to submit the Lohnsteuerkarte 2010 when you start a summer job Jobs. The first taxable person receives a replacement certificate from the tax office, explains the taxpayers’ federation. In addition, parents would not have to worry: since 2012, exceeding the income and earnings threshold of 8004 euros no longer results in the elimination of child or education allowance.



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Sequel Loans For Bad Credit Score + Easy To Pay Financial Debt For The Needy People

Obtaining rejected from a bank whenever applying for a loan can be very disheartening, but what if you have attempted like, five different banking institutions and been rejected every time?

Getting a loan with poor credit can be a time-consuming encounter and may seem almost impossible occasionally. In fact, many people just give upward because it seems like such a challenging task to find a bank that might lend you cash.

Again, if you are using unsecured installment loans no credit check, it is simple for you to acquire instant money varying from $1, 1000 to $25, 000 along with repayment option of 1 in order to 5 years. This sort of mortgage is totally free from collateral.

With the provision associated with bad credit installment loans, you might have the option to acquire of immediate cash varying from hundred bucks to $1500 bucks together with easy repayment tenure associated with 2 to 4 weeks. This really is supposed to be a short-term loan but very helpful to relieve from financial obstacles. Once you get the quick money, it is easy for you to satisfy various pending bills for example hospital bills, telephone expenses, grocery bills, wedding costs, water bills, library costs and lots more. To get more information about loan quotes related to this kind of sort of loan, you will have to take a look at online.

Once you’ve determined your requirements, visit health nightclubs that meet your needs. Get a totally free pass for each club (at least a one-week pass) and workout at each membership as often as possible during the free of charge periods.

Through this sort of financial strategy, it is easy for you to lend of urgent cash various from $100 to $1,5k bucks. Again, this mortgage is offered for only two to 4 weeks. The payback period is also short. The particular borrowers are to repay the particular loan amount along with the curiosity about installments, but the rates of interest are usually higher than normal. Without dealing with lots of problems, you can pay back the loan at any time.

The particular installment loans for bad credit are becoming increasingly popular given that they will be able to provide you loans from lower rates and fast access

This is possible by the time once the online forms are available in the marketplace. These online forms it is simple to download via the websites. Which after filling all these, you can easily publish by the online mode. In order to verify your documents is really a process which will be done in a simple manner.

4) Different Types of Credit Accounts. The lender will look into the various kinds of credit accounts you have. Unprotected lines of credit score differently compared to secured lines of credit. Home loans plus car loans are considered secured since the house or car are utilized as collateral against non-payment. Credit cards and personal signature financial loans are unsecured because there is usually no collateral required to protect the loan.

How Do Installment Loans Work? In terms of applying for installment financial loans no credit check, it can be done along with the comfort of your home via the web. To apply for it, you need to fill the online application form with your complete details such as name, sex, age and bank account and so forth Overall, it is a good way to obtain loan available with low interest.

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Recapitalizations, bad bank … the aids to the Spanish banking already overcome the 159,000 million

Recapitalizations, bad bank … the aids to the Spanish banking already overcome the 159,000 million

  • Official figures from the Bank of Spain limit public aid to 61,366 million, but millions of public and private money are omitted.
  • Thus, the entities have obtained more than 50,000 million transferring their toxic assets to Sareb, and have more than 40,000 million in protected losses.
  • Brussels estimates that 87% of capital injections will be losses (43,000 million); the FROB estimates that 72% (36,197 million) will be lost.

Euro bills on a flag of the European Union. ARCHIVE

Last September, the Bank of Spain published an informative note in which it counted the public aid destined to recapitalize the Spanish financial system between 2009 and 2013. The official figure is about 61,366 million euros , including the European rescue of some 40,000 million. It does not recognize – as the banking supervisor admits, “due to its different nature” – other types of aid made available to entities with the explicit or implicit support of public administrations .

The Bank of Spain itself acknowledges that it does not officially account for all aid to the financial system Adding these other real aid but not accounted for by official statistics, the recapitalization of Spanish banks would have already cost more than 159,000 million euros , with other measures such as the asset protection schemes and the various acquisitions of toxic assets, according to calculations of this newspaper based on reports from the Citizen Audit Platform of the Debt.

A similar amount of aid – more than 156,000 million – arrives at the economics professor Joaquín Maudos, in an article published in the last issue of the Economic Information Papers published by the Caja de Funds Foundation (Funcas). In his case, however, to the injections of capital (54,700 million) adds another 101,600 million between different types of “contingent debts”.


Losses on direct aids

The taxpayer has rescued the Spanish financial system directly through two public aid programs (called FROB 1 and 2) that cost 977 and 13,427 million euros, respectively, and the direct recapitalization of the European assistance program, for an additional amount. of 39,078 million euros . The Bank of Spain also adds another 7,884 million euros paid by the Deposit Guarantee Fund (FGD), an organization that has the State guarantee.

Technically, the public participation in the Sareb is 2,000 million, but it is the guarantor of 50,000 million in debt. The current calculations prepared by the Fund for Orderly Bank Restructuring (FROB) now estimate that 72% of the investment made will be lost : more than 36,197 million, figure admitted by the Government itself. The European Commission, for its part, raise these losses to 87% of the injections, more than 43,000 million that will go directly to the public deficit . So far the official accounts; but the salvation of the financial system has more costs.

More than 52,000 million of the ‘bad bank’

This is the case, for example, of the so-called bad bank , the Asset Management Company from Banking Restructuring (Sareb), a semi-public body that has acquired 40% of the toxic assets (land, loans to developers, real estate .. .) of the financial system. These assets, although they were acquired with an average discount of 63% over their theoretical value (estimated by the entity itself in their accounts), did not find another buyer since the bursting of the real estate bubble, and have thus led to an indirect injection of capital for entities .

Technically, public participation in the Sareb, the largest real estate in Spain, is 2,192 million, which is the amount of public money that has been used to enter the capital of this entity. However, the more than 50,000 million spent to acquire the toxic assets are debt guaranteed by the State . That is to say, the immense majority of the risk for future losses of the bad bank is backed by the Spanish citizens. “Simulating that it is not a public company [55% of the shareholders is private] is nothing but a flagrant fraud of law,” as economist Carlos Sánchez Mato points out of the Platform for the Nationalization of the Savings Banks.

Nor are officially accounted for, but have been used, other than 21,000 million euros that the administration set out in various plans to provide liquidity to financial institutions , such as the Fund for the Acquisition of Financial Assets (FAAF), liquidated in 2012.

The EPA, help for healthy banking

Asset protection schemes represent a shield against possible losses when buying a nationalized entity The Bank of Spain also admits that it does not count the so-called “asset portfolio protection schemes” (EPA). This type of program supposes, in theory, a support to the integration of financial entities with problems within healthy entities, by means of a public guarantee on the future losses of certain assets. Thus, for example, Banco Sabadell acquired the CAM in 2011 with the condition of enjoying a shield for 80% of the future losses of a portfolio valued at 16,000 million euros.

The EPAs, which allow entities to reduce their volume of provisions (that is, their mandatory reserves for future losses), are “a concept very different from the injection of capital,” as the banking supervisor points out. However, they have meant for the entire Spanish financial system an amount -in guarantees to certain assets- of more than 35,681 million euros , which can lead to losses as time passes. So far, and according to official data, the expected losses already reach 6,506 million euros, “which are provisioned in the financial statements of the FGD and the FROB”, both institutions with the final guarantee of the State.

Greater still is the invoice of the schemes of protection of active according to the last calculations published by the Service of Studies of the Caixa, that in a report of January estimated in 42,000 million the total of credits and immovable protected by the Fund of Guarantee of Deposits , and of which we expect losses of around 10 billion euros.

Guarantees and loans

The bank debt guaranteed by Spain exceeds 64,000 million, and the ECB loans 350,000 million The lines of public guarantees is another of the ways that the Spanish authorities have taken since the beginning of the crisis to assist the financial system. As the entities had in practice closed access to financing from abroad (for years the interbank markets remained almost closed) the State acted as the ultimate guarantor, so as to increase guarantees. Up to now , 48% of the loans guaranteed by the administration have been returned with interest .

The figures regarding public guarantees made available to banks and savings banks vary, according to sources. For the Research Department of La Caixa the amount of debt not due (that is, still in force) amounts to more than more than 64,000 million, while the Citizen Audit Platform of the Debt raises the amount to 110,000 million . They have also helped to maintain the liquidity of the financial system, the loans of the European Central Bank (ECB) which have amounted to more than 350,000 million euros , and which will have to be repaid.

Tax credits of more than 63,000 million

Fiscal assets allow to pay less taxes in the future for losses in the present Special mention deserve the assets and tax credits , a “help to the bank by the back door”, as defined by Carlos Sánchez Mato, of the Platform for the Nationalization of the Savings Banks. In total they represent more than 63,000 million euros that have been counted as benefits, and of which the State could end up being responsible.

As defined by BBVA itself, deferred tax assets are “taxes that must be recovered in future periods, including those derived from tax loss carryforwards or tax credits pending settlement”. That is, the entities that have suffered losses on their balance sheets have been allowed to reduce them by way of corporation tax that will be saved in the coming years (since the Treasury can compensate for the current losses with less taxes in the future ). That yes, it is essential that there are benefits in the future to be able to activate these tax credits.

The Spanish bank has used this tool massively as if it were its own capital, and the sector sources consulted by this newspaper put the total amount between 63,000 and 50,000 million euros . The problem is that the new rules that will be applied by international banking (norms known as Basel III) prevent these tax assets from forming part of the minimum capital required. That is to say, that without explicit public guarantee of those tax credits, the entities would have to obtain new capital (shareholders) for an equivalent amount.

The forced swaps of preferred and subordinated debt have injected 13,600 million in nationalized entities The Government, after months of negotiations with the entities, has reached an agreement to allow them to continue accounting as capital between 25,000 and 30,000 million euros, such as Voz Pópuli reported. In summary: tax privileges will be given to banks, which may not pay taxes based on their losses . The State will collect less to avoid new bankruptcies of the Spanish financial system.

The preferred ones, a private help

The imposition of losses on investors of preferred shares and subordinated debt is another aid, in this private case, which has helped to recapitalize financial institutions in trouble. With the euphemisms of a “management of hybrids” and a “burden sharing” and the excuse of reducing the cost to the taxpayer, the European Commission forced the nationalized savings banks to convert their preferential shareholders into forced shareholders, also applying losses in the exchange of up to 73% of the investment.

The total cost, according to the estimates of the FROB itself, is that the owners of preferred and subordinated debt have contributed 13,600 million euros to recapitalize the Spanish financial system . These new and former shareholders are, however, those who “have assumed most of the bailout”, in the opinion of Professor Joaquín Maudos. According to their estimates, the entities have dedicated more than 250,000 euros to provisions since the beginning of the crisis; these write-downs have been charged against reserves, which explains the poor performance of the sector in the stock market since 2009.

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Real estate activities: construction interest as high as three years no longer

For real estate financiers, who have not yet secured their interest in the long term, the air is thinner. The average mortgage loan is 5 percent. Variable interest rates or loans in foreign currencies are cheaper, but a greater risk.

For real estate financiers, who have not yet secured their interest in the long term, the air is thinner. In recent days, the average mortgage rate for a neuabgeschlossene ten-year bond is the first time rose to more than 5 percent in June of 2004. Whoever is planning a home purchase or additional financing needs must continue to fear. Because the European Central Bank is expected to raise rates to 4 percent on Wednesday. Analysts expect a more or two rate hikes of up to 4.5 percent. In the medium and long-term bond yields could then continue to grow at which the interest rates for building loans are based.

Prospective borrowers and lenders connection – only the private buyers need for these purposes loans of over 10 billion euros a month – have a few options to respond to the changing interest rate environment. The most important step is the selection of the bank. Because the conditions are still significantly apart. The best providers offer a good percentage point more at a ten-year fixed interest rate of 4.6 percent, which requires expensive. In the financing of an average terraced house, the difference is more than 2,000 euros a year.

Who feared further rises in interest rates and wants to commit a certain monthly payment, can resort to forward loans. With such contracts lending rates can be saved, the only start in one, two or even up to five years. A two year completed in advance loans with ten years fixed interest rate, for example, the intermediary Interhyp currently around 0.2 percent annual rate over immediately incipient. If the loan three years agreed in advance, the interest rate premium is 0.35 percent. A ten-year loan will cost 5 percent of Interhyp while immediately incipient credit for 4.65 percent to have.

The rarely settled in Germany credit with a floating rate currently offers little advantage. For such contracts, the debtor knows the height of his precise obligation only for a few months in advance. The interest is continuously updated and mostly based on the three-month Euribor, a phrase that makes the banks themselves for the moneylending charged. One advantage is the very flexible repayment. The debtor may at any time fully repay the loan without a penalty fee. However, banks usually ask in advance a processing fee of 0.5 to 1.5 percent of the loan amount.

The best deals are currently in some regional providers, such as the Sparkasse Leipzig or the PSD Westfalen-Lippe to have. They demand the Euribor rate (currently around 4.1 percent) plus around 0.6 percent. Thus, the initial interest rate of 4.7 percent, which is at the same level as the fixed-rate loans. The variable loans have the advantage of falling interest rates immediately lead to a reduced load. Conversely, however, the debtor must pay more if the short-term market interest rate increases, which is currently expected by many analysts.

If you still can not do without the variable interest rate for the flexible repayment rules, but also wants to limit the risk can agree on a maximum interest rate. The broker Interhyp offers, for example, for ten years a ceiling of 6.5 percent and calls for a premium of 15 basis points, so that the initial interest burden of the variable loan Interhyp of 5.01 increased to 5.16 percent. This protection of the interest of the debtor may rise even under the harsh course of the market rate for the first ten years only to a maximum of 6.5 percent.
Risky is the loans in foreign currencies

The floating-rate loans are only a niche product with a market share of less than 2 percent. Even rarer and risky these loans if they are included in foreign currencies such as Swiss francs or yen. Such contracts are tempting for many real estate lenders, at least at first glance, because the interest rates are much lower. A variable rate mortgage loan in CHF is for example in the HypoVereinsbank to have currently with an initial interest rate on a little more than 3.5 percent: The CHF Libor, a counterpart to the Euribor currently set at 2.3 percent, 1, the Bank requires 25 percent annually as margin and additionally there is a one-time processing fee of one percent.

The yield advantage of more than one percent compared to conventional Euro-fixed rate loans looks tempting, especially as the franc has appreciated over the past four years by more than 10 percent. But these currency gains are not cemented. A devaluation of the franc would cause the debtor as quickly in trouble – especially when at the same time should increase interest rates in Switzerland. “These risks must be able to afford it,” warns financial advisor Max autumn.

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