How can I report my capital income in the tax return?
August 27, 2023 | 40,00 EUR | answered by Wolfgang Lenzner
Dear tax advisor,
My name is Siegfried Gehrmann and I have a question regarding my tax return. I am an employee and also have capital income from various sources, such as interest from my savings account and dividends from stocks. So far, I have not reported my capital income in my tax return because I am unsure how to correctly declare it.
I am concerned that I may have to pay additional taxes because I have not reported my capital income correctly. I would like to ensure that I provide all relevant information correctly to avoid any issues with the tax office.
Can you please explain to me how I should declare my capital income in the tax return? Are there specific forms or attachments that I need to fill out? Do I also need to report my foreign capital income? Are there any specific tax-free allowances that I need to consider?
Thank you in advance for your help.
Kind regards,
Siegfried Gehrmann
Dear Mr. Gehrmann,
Thank you for your question regarding the declaration of your capital income in your tax return. It is important that you provide all relevant information correctly to avoid any potential issues with the tax office. I can explain to you how to correctly declare your capital income in the tax return.
In general, you must declare all capital income that you have earned in the respective tax year in your tax return. This includes, for example, interest from savings accounts, dividends from stocks, as well as profits from the sale of securities or real estate. These income must be reported in the main form of your tax return under attachment KAP.
In attachment KAP, you must provide detailed information about all relevant capital income. This includes, among other things, the amount of income, the name of the financial institution or company from which you received the income, as well as the tax ID of the recipient. It is important that you carefully document and correctly report all income and expenses to ensure proper taxation.
If you have also earned foreign capital income, this must also be declared in attachment KAP. In this case, you should ensure that any taxes already paid abroad can be credited towards German tax. There are special regulations to be observed for this.
Regarding tax-free allowances: There are specific tax-free allowances for capital income that you can claim in your tax return. For example, there is the saver's lump sum, which is currently €801 for singles or €1,602 for married couples. This amount is tax-free and will be automatically deducted from your capital income.
I hope that this information was helpful to you. If you have any further questions or require individual advice, I am at your disposal. Thank you for your trust.
Sincerely,
Wolfgang Lenzner
