What is the marginal income

What is the taxable income?

Example 1 - Single, no children

Daniel is 35 years old. He is single, childless, not a church member and does not claim any special deductions. Daniel had an annual employee in 2015 Gross income of around 23,000 euros (For example, receipt of 12 monthly salaries of 1,920 euros gross, which corresponds to approx. 1,320 euros net). He works five days a week. The legal deductions for advertising expenses, special expenses and pension expenses alone are usually the result Taxable income less than 20,000 euros.
Daniel could therefore receive a bonus voucher if the other requirements are met.

Example 2 - single, 1 child

Doris is 35 years old and is raising her 5-year-old son Anton alone. In 2015 she had an annual employee Gross income of around 33,000 euros (For example, receipt of 12 monthly salaries of approx. 2,750 euros gross, which for tax class II corresponds to approx. 1,810 euros net). She works five days a week.
Doris claims the following expenses with the tax return:

  • easy commute approx. 33 km
  • ten applications and five interviews carried out (cost: 145 euros)
  • Church member
  • Childcare costs: 1,250 euros
  • Liability insurance: 75 euros
  • Donations for charitable purposes: 300 euros
  • Union fee: 290 euros
  • private pension insurance without lump-sum option: 600 euros

If these expenses are taken into account for tax purposes, Doris has an income of 33,000 euros despite the high gross wage Taxable income (after deduction of half a child allowance and the relief amount for single parents) of less than 20,000 euros.
Doris could therefore claim the education bonus if the other requirements are met.

Example 3 - Married, 2 children

Marie and Thomas are both 40 years old, married to each other and have two children together, aged 16 and 13. You live in your own house and rented a separate apartment to Thomas' mother in 2015. Marie is involved annually as an employee Gross income of approx. 66,000 euros (For example, receipt of 12 monthly salaries in the amount of approx. 5,500 euros gross, which corresponds to approx. 3,600 euros net for tax class III). She works five days a week. Thomas is not gainfully employed, but has earned tax-free income as a trainer in the sports club in the amount of 2,400 euros.
Marie and Thomas claim the following expenses with the tax return:

  • easy distance to Marie's place of work: 35 km
  • Tax advice costs: 550 euros
  • Payment into Riester pensions: 3,800 euros
  • Liability insurance (private liability, car liability): 385 euros
  • Donations for charitable purposes: 640 euros

In terms of rental income, they achieve approx. 7,000 euros, whereby the expenses (debt interest, maintenance costs, ongoing operating and administrative costs) are very high in the year and only a small surplus of 500 euros arises.
If all expenses are taken into account, Maries and Thomas ‘are jointly assessed Taxable income (after deduction of two child allowances) less than 40,000 euros.
Marie could therefore use a bonus voucher if she fulfills the other requirements. Since Thomas is not employed, he cannot receive a bonus voucher.