Finally good news about taxes: you have to pay less – even in 2015
The Bundestag has decided on a whole series of tax breaks. The Federal Council has also approved the “law to reduce cold progression and adjust family benefits”. The name of the law already shows who benefits above all from the tax relief: workers for whom wage increases no longer arrived properly due to the tax increase, and parents. According to calculations by tax experts, the tax relief for taxpayers and families, depending on the salary brings an advantage of 96 € to 186 € per year. Here in the quick overview the most important changes and innovations:
Tax relief 2015 has been decided: who benefits from the tax relief? / Image: iStock
Increase in basic allowance 2015:
The basic allowance is the base amount of the income, which remains as a subsistence always tax-free. If this allowance increases, the proportion of income for which you pay taxes to the tax office will decrease. The basic allowance now increases in two stages:
Basic allowance 2015: For singles it rises by 118 € to 8,472 € (previously: 8,354 €). For jointly-registered spouses, the basic allowance increases in 2015 by € 236 to € 16,944 (previously € 16,708).
Basic allowance 2016: Increase of € 180 to € 8,652 (single) or € 360 to € 17,308 (cohabiting spouses).
What you need to do for it: That’s another good news! All tax reliefs are automatically applied by employers and tax offices! So you do not need to do anything to enjoy the tax cut. However, you still need a little patience! Although the new basic allowance is already valid for the entire year 2015, it will only be taken into account in the billing in December 2015 for the entire year. You will not feel the relief until December – but then in time for the Christmas shopping. The further reduction in the basic allowance from 2016 will then be taken as a basis in the monthly statements from January.
Increase child allowance 2015 – relief for parents
The child allowance is the amount that remains tax-free per child. At present, the allowance per child amounts to 7,008 € for both parents (in the case of separated parents, half of the allowance applies to both parents). Also, this allowance increases in two stages, so that parents have a tax relief.
Child allowance 2015: Increases by 144 € to 7,152 €.
Child allowance 2016: rises again by 96 € to 7,248 €.
Increase child allowance 2015
Even small cattle makes a mess, says the vernacular. Therefore, you should also look forward to the increase in child benefit, even if it is very clear:
From now on the child allowance will increase in 2015 by 4 € to 188 € per month for the first and second child, 194 € for the third and 219 € for the fourth and further children.
From 2016 there will be another 2 € more per child per month.
Relief for single parents
Even single parents have a little easier financially: The single parent relief amount increases by 600 € from 1.308 € to 1.908 € for the first child.15