Application for the Tax Identification Number
The Tax Identification Number is an essential requirement for any tax registration in Germany. If the aspiring trainee does not yet have a tax ID or has lost it, it can be requested from the Federal Central Tax Office (BZSt). The tax ID is necessary for the future employer to calculate income tax correctly. The application should be made in a timely manner, as delivery may take some time.
Determining the Tax Class before Vocational Training Starts
Even though the salary only becomes tax-relevant with the start of the vocational training (Ausbildung), it is advisable to know the tax class in advance. Usually, single trainees are classified in tax class I. If there are special personal circumstances, such as a marriage, the tax class may be different. This classification helps to estimate in advance what deductions are to be expected during the training.
Preparation for Tax Allowances and Their Impact
Before starting the vocational training (Ausbildung), it is helpful to become familiar with the tax allowances that reduce taxable income. The basic allowance ensures that a portion of the income remains tax-free. These allowances are automatically effective and do not need to be applied for. However, it is wise to check in advance whether additional tax allowances might be relevant based on the expected income.
Requirements for a Tax Return regarding Vocational Training Costs
If training-related costs, such as travel expenses for interviews or applications, arise before the start of vocational training (Ausbildung), these can be claimed later in the tax return as business expenses in certain circumstances. These expenditures can lower taxable income and thus reduce the tax burden. Detailed documentation of these costs is advisable to include them later in the tax return.
Registration with the Relevant Registration Authority
Before tax registration, a residence registration at the local registration office is required. The tax ID will be sent directly to the registered address. This registration is a prerequisite for being tax recorded and should be completed before starting any work or vocational training (Ausbildung).
Taking Advantage of Preliminary Tax Consultation
To be optimally prepared tax-wise before starting vocational training (Ausbildung), aspiring trainees can seek tax consultation. This advice helps to clarify all necessary steps and prepare important tax aspects for the start of the training. The possibility of claiming business expenses incurred before the training in a later tax return can also be discussed in detail.