While the term "wife allowance" is not a formal legal or tax designation in Germany, it often refers to certain tax benefits available to married couples. The most relevant benefit in this context, as of 2023, is the employee flat rate allowance (Werbungskostenpauschale), which offers a significant tax advantage for working individuals and can be doubled for married couples.
Understanding the Employee Flat Rate Allowance (Werbungskostenpauschale)
The employee flat rate allowance is a fixed amount that employees can claim in their tax declaration to cover work-related expenses, such as commuting costs, professional literature, or office supplies, without needing to provide individual receipts.
For the year 2023, the standard amounts are:
| Category | Allowance Amount | Conditions |
|---|---|---|
| Individual Employee | €1,230 | Per person, once per year, regardless of jobs |
| Married Couple Filing Jointly | €2,460 | Both partners must be working |
This means that if both partners in a married couple are employed and file their taxes jointly, they can effectively claim double the individual allowance, reaching a total of €2,460. This amount is automatically deducted from their taxable income, reducing their overall tax burden.
Key Aspects of This Tax Allowance
- Per Person Basis: The allowance applies to each individual employee. For married couples, the ability to claim double the amount is contingent on both partners being in employment.
- Annual Claim: This allowance can only be claimed once per year per person, irrespective of whether an individual holds multiple jobs.
- Automatic Deduction: In most cases, the tax office automatically applies this flat rate deduction if you don't list higher work-related expenses. If your actual work-related expenses exceed this flat rate, you can declare them individually to potentially receive a larger deduction.
- Not Specifically for a Spouse: It's important to reiterate that this is not an allowance specifically for a "wife" or "husband," but rather a standard employee deduction that married couples can benefit from collectively when both are working.
Understanding these tax allowances can help married couples optimize their tax situation in Germany. For more detailed information on tax-deductible expenses in Germany, you can consult official tax resources or professional tax advisors.
