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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