Category: Pensioners
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Extraordinary burdens – Außergewöhnlische Belastungen
“Außergewöhnliche Belastungen” is a German tax law term, translating to “extraordinary burdens” or “exceptional expenses,” crucial for allowing taxpayers to deduct some costs from their income. Various types of exceptional expenses, such as medical and disability costs, funeral expenses, and damages from natural disasters, can be categorized under this law each with specific qualifying criteria.…
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Basic tax free allowance in Germany
Germany’s tax system, specifically the Grundfreibetrag, a tax-free threshold, ensures fairness and lightens the burden for lower-income individuals. The Grundfreibetrag is a dynamic amount, dependent on economic conditions and legislation, subtracted from each taxpayer’s income. It is essential to stay informed, as tax laws are subject to changes. This allowance underscores the equity embedded in…