State interest income in the tax return

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If you achieve investment income, these must be taxed in principle. It is therefore essential to state interest income in your tax return, especially if the income exceeds a certain amount. The procedure is quite simple in this context. However, you have to pay attention to a few points, for example the available saver lump sum.

Interest must be declared in the tax return.
Interest must be declared in the tax return.

How to correctly report interest income


The interest income must be stated in detail in the tax return if you have exceeded the available saver lump sum.

  • In principle, every citizen in Germany has a flat-rate saver amount of 801 euros. Provided that Investment income exceed this amount, they must be listed in detail in the tax return. If this is not the case, all you need to do is state that your investment income was not higher than the flat-rate saver amount available.
  • If it is necessary to enter the interest income and other investment income, you can do this in Appendix KAP (income from capital assets). You can access this annex online as well as all other forms that you need in the course of the income tax return.
  • In line 7 of the KAP annex, the capital income received is entered. The form also takes into account that a distinction is made between domestic and foreign income. In addition, in line 14 of Annex KAP, you have the option of specifying which portion of the income fell into the range of the saver lump sum.


What to consider with regard to the investment income in the tax return

  • Basically, there are a few important points to consider in connection with interest income. The important thing to note is that you just don't interest chargesbut must also disclose all other income that has arisen in connection with the invested capital.
    • Income from capital assets - information for the tax return

    You must submit income from capital assets in your income tax return to ...

  • In addition to interest, dividends, for example, but also capital gains are taxable income that falls into the area of ​​investment income. You must therefore also list income in the declaration that resulted exclusively from the fact that you, for example shares have sold profitably.
  • It is also very important to note that not only domestic but also foreign investment income must be listed. If you do not do this, you are committing tax evasion, which must be avoided at all costs.
  • Since Germany has a so-called double taxation agreement with many other countries, they have to For example, income generated abroad is not taxed there and also taxed in this country will. Double taxation is avoided by such agreements, so that you only have to pay tax on the investment income earned in Germany or only abroad.

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