As is generally known, the income tax return must be filed every year if not only employee income according to Section 19 of the Income Tax Act is generated. If there is only domestic employee income and the other income does not regularly exceed 410 euros, a tax return is generally not required. In this case, however, a tax return can be submitted voluntarily (application assessment, Section 46 (2) No. 8 EStG).
If income pursuant to Section 23 EStG private sales transactions or income pursuant to Section 22 No. 3 EStG other income is generated, it must therefore be examined in detail whether the limit of 410 euros has been exceeded and whether there is an obligation to submit a tax return.
Example
A generated non-self-employed income as an employee pursuant to Section 19 EStG in 2020. At the same time, he carried out taxable sales transactions in 2020 in accordance with Section 23 EStG and generated a profit of EUR 650.
A must file an income tax return in this case, since the sum of income without wage tax deduction (i.e. excluding employee income) exceeds 410 euros.
Variation
In 2019, A still has an established loss carryforward from private sales transactions in the amount of EUR 250.
In this case, A does not have to file a tax return for 2020, as the loss from 2019 in the amount of 250 euros must first be offset against the profit from 2020 from private sales transactions in the amount of 650 euros. The remaining amount of 400 euros is below the limit of 410 euros specified in Section 46 (2) No. 1 EStG.
In addition, care must be taken to ensure that the tax return for 2020 is submitted by July 31, 2021. If a lawyer or tax advisor is engaged, the deadline is extended to 28.02.2022. Finally, the tax return must also be accompanied by Annex SO (Other Income). In this annex, trading profits and losses must be stated.