Did you work in Germany as an employee and pay income tax there? In that case, you may be required to file a German tax return (Steuererklärung). Note that in most cases, it is not mandatory, but if you file it voluntarily, you might get a portion of the paid tax back. You will learn how to do this and what deductible items you can include in your tax return in this blog.

Not every employee who worked in Germany automatically has to file a tax return there. The obligation only arises in legally defined cases, where the German tax office does not accept ignorance of the law and will not hesitate to issue hefty fines for delays. This could apply, for example, to a situation where an employee had multiple employers simultaneously during the year, had other taxable income, or used specific tax settings, such as a combination of tax classes 3 and 5 for married couples.

The obligation can also arise if you received certain social benefits during the year or other income subject to the so-called Progressionsvorbehalt, provided their total amount exceeded €410 per year. Therefore, it is important to assess each situation individually.

Voluntary Tax Return

If you are not required to file a tax return, you can file one voluntarily. This applies to you especially if you were placed in tax class 1.

Filing voluntarily pays off if you can document deductible items. The German system for 2026 applies a tax-free allowance of up to €12,348, and the tax rate itself ranges from 0% to 45%. The annual reconciliation may reveal that you paid more tax during the year than necessary, and the German Finanzamt will refund the overpayment. With a voluntary return, it is also possible to file up to 4 years retroactively.

What Expenses Can You Claim?

One of the most important parts of the tax return is the so-called Werbungskosten, i.e., work-related expenses.

The German system automatically applies a flat-rate allowance for employee expenses (Arbeitnehmer-Pauschbetrag), which for 2026 is €1,230. If your actual eligible expenses are higher, it pays to properly prove them in your tax return. These include, for example, commuting costs, work equipment, protective clothing, training, or business trip expenses.

Do You Live in Slovakia?

A specific situation applies to employees who work in Germany but whose household and family remain in Slovakia.

If you meet the legal conditions for a so-called double household, you are entitled to claim additional significant expenses. Especially relevant are the costs of maintaining a second household in Germany, such as rent, but also the travel costs to visit your family in Slovakia.

What Do You Need to Process the Return?

To prepare a German tax return, you primarily need data on your income and taxes paid in Germany. The basic document is therefore the annual statement called Lohnsteuerbescheinigung, which you receive from your employer.

Besides this, you will need receipts for work-related expenses, proof of travel, accommodation, and work equipment costs. In the case of a double household, documents regarding your family and housing situation in Slovakia are also required.

Who Benefits from a German Tax Return

So, is it worth filing a German tax return? In many cases, yes. However, the outcome depends on the specific situation: the amount of your income, tax paid, length of employment, or claimable expenses. It is not true that every foreigner working in Germany automatically gets a portion of the tax back. Each tax return must be assessed individually.

Did you work in Germany? Have your tax return checked by experts. At ProfiDeCon, we will help you prepare your German tax return, check all possible deductible expenses, and ensure it is processed flawlessly. Perhaps you paid more tax during the year than you actually had to. Contact us and find out if the possibility of a tax refund applies to you too.