How is the taxable income made up?

Expenses reduce the taxable income

As an employee, you usually have two incomes - your gross and your net income. Very few people know how high their taxable income is.

• Taxable income is the amount on which the Tax office sets the ultimate income tax payable. To determine this income, you prepare the tax return every year.
• All income, such as wages, interest income and rental income, to name just a few, are compared with all expenses. The taxable income is then made up of all these components.
• In the case of employees, for example, the ride costs, Training and further education costs and other income-related expenses are offset.
• As a self-employed person, you can determine your actual income using the income statement.
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Claim business expenses and special expenses against the tax

German income tax law distinguishes between seven different ...

• If your income from securities exceeds the savings allowance, the excess must be taxed. Of this income, the coststhat have arisen in connection with the income are deducted. This includes losses on sales of securities or custody fees.
• The rental income from a rented property is compared with the expenses. These are made up of the interest charges, the depreciation and other related expenses. If the expenses exceed the rental income, this reduces your total income.

Special editions are made up of various kinds

• As the person liable for maintenance, you can state the maintenance to be paid in the special expenses. The recipient must in turn tax this as income.
• The legislator understands special expenses as all costs that are not standard living expenses. These are made up of many components, for example costs for medical treatment or home care.
• Ultimately, taxable income is the number that comes together when all of your income is put together and your corresponding expenses are compared.
• It is therefore possible that a citizen with a gross income of 100,000 euros due to depreciation, Interest expenses, maintenance and travel expenses at the end of the year a taxable income of 15,000 euros Has.
• If a person with a mini job has successfully speculated on the stock exchange, the taxable income will rise to the taxable range this year.