Last-Minute Tax Savings: Year-End Checklist 2023/2024

There is still enough scope until the end of the year to reduce the personal tax burden for 2025. With these ten last-minute tips you can do it.

1. Bring forward planned expenses

The basic rule: Expenditure that is already planned and is related to payments, investments and subsidies can be brought forward from 2026 to December 31, 2025. These include tax-deductible repairs, donations and investments.

2. Buy low-value assets

Purchases up to a purchase price of 800 euros (952 euros gross) can be immediately deducted in full as work equipment. The decisive factor here is the net purchase price. Straight Freelancer and self-employed people with high profits in the coming year should mMake as many business purchases as possible up to 800 euros net in 2025 and sell them off immediately.

3. Purchase IT work equipment

There is no longer an upper limit on the amount of hardware and software: As a rule, it can be fully deducted for tax purposes in the year of purchase because the tax authorities allow a useful life of one year and, for reasons of equity, full depreciation in the year of purchase is not allowed objected to.

Employees can claim the full amount of expenses for work-used PCs, emergency tools, smartphones, software and printers in the year of purchase. In the case of mixed use, the professional share must be taken into account. Self-employed people must record such purchases in fixed assets and can then write them off in full as business expenses in 2025.

4. Pay bills related to house and apartment

Anyone who, as an owner or tenant, commissioned tradesmen’s services for work on or in private households and had them carried out this year can deduct 20 percent of the amounts paid in cash for work costs up to December 31, 2025, up to 6,000 euros, directly from their tax liability, i.e. a maximum of 1,200 euros. A percentage breakdown of the invoice amount into labor and material costs must be accepted by the responsible tax office in the event of a receipt request.

The costs for household-related services paid in cash by the end of the year can be deducted directly from the tax liability at 20 percent (maximum 4,000 euros). In addition to expenses for household help, gardeners, winter clearance services, sidewalk cleaning, geriatric nurses, au pairs and caretakers, the deduction option also applies to pet sitters. Those in need of care can also use their relief amount of 125 euros to pay for household-related services.

5. Adjust trainer and volunteer allowances

The tax-free trainer allowance for educational, artistic or nursing activities on behalf of non-profit organizations, clubs and public institutions will be increased from 3,000 to 3,300 euros in 2026. Anyone who expects to exceed the tax-free limit this year can, if necessary, agree with the client that any outstanding payment will not be made until the new year.

The same applies to the volunteer allowance, which allows for tax and social security-free compensation and will increase from 840 to 960 euros in the new year. Here, too, it is possible to fine-tune the timing of payment in order to make optimal use of tax allowances.

6. Adjust saver allowance

Bank customers should receive exemption orders (for 2025, unchanged: 1,000 euros for single people and 2,000 euros for those jointly assessed). partners) check and if applicable before the end of the year adjust. All depots and accounts should be checked for expected returns in order to distribute the allowance proportionally, for example higher ones The sum for brokers with high dividends, also with a view to 2026.

If investors are customers of several banks, it is important not to exceed the maximum exemption amount. Married couples can divide this amount flexibly, around 1200 euros for one partner and 800 euros for the other, in order to optimally cover the inflow of capital income from a fiscal perspective.

The order can be made online or via a form at any bank placed including tax ID, address, marital status and desired amount. Changes for 2025 by December 30th at the latest. The order is Inder Rule takes effect immediately, sometimes retroactively for some financial institutions. Failure to do so will result in a refund too much Taxes paid are possible via the tax return for 2025.

7. Pay PKV contributions in advance

Deduct up to three times the annual premium for private health and nursing care insurance. Those with private health insurance can also pay up to three annual premiums in advance in 2025. The tax office must accept these payments for private health insurance as special expenses. Only contributions to basic health and compulsory nursing care insurance are eligible; Optional services such as single rooms and treatment by a chief physician as well as other additional insurance are not included.

The legal basis for this is a change already stipulated in the 2019 Annual Tax Act. Since then, those with private health insurance have been allowed to deduct the actual amount of their contributions to their basic health and compulsory nursing care insurance as preventive expenses for up to 36 months in advance.

Please note: Policyholders must ensure that payment is made to the private health insurance premium account by December 31st. received in 2025. This means that significant tax savings are still possible for the assessment year that is soon to end.

8. Complete energy renovations

Anyone who is about to complete energy-saving measures on their home should hurry up: if they are completed by December 31st, full funding for 2025 will be secured. Energy measures such as insulation or heating replacement in owner-occupied residential buildings can be tax reduced in 2025, with 7 percent of the costs in the first two years (maximum 14,000 euros per year) and 6 percent in the third year (maximum 12,000 euros), a total of up to 40,000 euros per property.

If you can’t do this in time: The funding is valid for qualifications until December 31, 2029, so that there are no fiscal disadvantages if you graduate in 2026 – and the reduction can then be claimed in the 2026-2028 tax return.

Please note: Non-energy tradesman services are deductible separately up to 1,200 euros per year, regardless of the calendar year.

9. Optimize income surplus calculation

Self-employed people who bring forward planned expenses to the end of the year and postpone income until 2026 can still reduce their tax burden. A legal design: Until New Year’s Eve, business expenses with Repairs, investments or VAT advance payments (the next is due on January 10, 2026) to reduce the 2025 taxable profit.

10. Check depreciation options

Also the investment allowance (IAB) – up to 50 percent for planned purchases in the years 2025 at 2027 (with annual profit of less than 200,000 euros before deductions) – is for Self-employed and freelancers this year can be activated. Small business owners can in addition still ahead End of year one Use special depreciation: 40 percent on the purchase of movable items Economic goods.

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