The summer vacation has begun. And with it the time for vacation jobs for pupils and students. What they earn from these jobs also has tax implications. To ensure that as much of their wages as possible remain in their wallets, vacation jobbers should take a few tips into account. The Ministry of Finance has put together some tips on this.
In many cases, income remains tax-free because it is below the basic tax-free allowance. For example, a basic tax-free allowance of 9,408 euros applies for tax class I this year. If the total earnings are below the basic tax-free allowance, the taxpayer receives a full refund of the taxes initially withheld via an income tax return. However, if you are employed in a so-called 450-euro job, flat-rate tax rates apply, which are paid by the employer. These cannot be claimed retrospectively from the tax office. It is worth taking a closer look and checking whether a 450-euro job as a vacation job makes sense from a tax perspective.
The current tip "Temporary work for school pupils and students" from the Ministry of Finance provides up-to-date information on this topic. The tip can be downloaded from the Ministry's homepage or here.