Frankfurt / Main – If you want to save a lot of money by the end of the year, you can do so: options are available, for example, in the case of old-age provision, a change of tax class or car insurance. We show with 6 practical savings tips, what consumers can do.
Tip 1: Car insurance – Use special right of termination
Drivers who want to switch to a cheaper motor vehicle insurer in 2016 still have to hurry: insured persons generally have to cancel their policies by 30 November. Shortly before the expiry of the period of notice for one-year car insurance prices fall. But even after the deadline, a change of insurance is possible: If the insurer increases the contributions, customers can make use of their special right of termination one month after receipt of the notification.
Tip 2: Pensions – Securing state Riester allowances
Riester savers should check before the end of the year, whether they have applied for all state allowances. After two years the claim expires – by the end of December at the latest the supplements for 2014 have to be applied for. A so-called permanent allowance application makes the annual applications superfluous.
Tip 3: Allowances – apply now
The net can also be increased by applying for allowances – for example for travel expenses to work, child care or domestic help. Employees must apply for their allowances by the end of the year if they are to be included from January. All changes to the wage tax features are requested at the tax office.
Tip 4: Investments – Prefer expenses and deduct from tax
Those who prefer certain expenses to the current year can save taxes. So it is sometimes worthwhile to bundle expenses that can be deducted as income-related expenses later this year, provided that they exceed the lump-sum limit of 1,000 euros. Because what goes beyond the employee’s lump sum in a calendar year can be claimed for tax purposes. The cost of income includes all professional expenses from work equipment to childcare.
Especially when you are in the middle of a major renovation, experts advise you to split the payment. Craftsman services are deductible up to 6,000 euros per year (of which a maximum of 1,200 euros), household-related services up to 4,000 euros (of which a maximum of 800 euros). The pure labor costs can be deducted pro rata with 20 percent of the tax burden. By paying in advance or by paying in advance, the costs can be spread over 2016 and 2017.
Tip 5: Donations – Reduce tax burden through donations
As special expenses, donations to church, charitable or charitable organizations and associations can lower the tax burden. Here, a maximum of 20 percent of the total income as a donation is possible – but only with a valid donation receipt.
Tip 6: Investment – offset losses with profits
Investors should check with their bank for interest and other capital gains exemptions. The distribution of the tax allowance can be adjusted until the end of December. For profits in excess of the allowance of € 801, investors must pay a flat-rate 25% withholding tax. for jointly assessed pairs, the allowance is € 1,602.
Anyone who has already thought of submitting a loss certificate to their bank by mid-December can reduce their burden even further. Losses from securities transactions can be offset at one bank with profits at another institution.
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