How can you claim unemployment on taxes

Unemployment: You should consider this from a tax point of view


Unemployment places significant financial constraints on most people. In order to at least cushion the situation after losing one's job, there is unemployment insurance in Germany. The wage replacement benefits paid by it are tax-free, but are subject to the progression proviso. You can read in this article what you should pay attention to in terms of taxation during unemployment and what expenses (e.g. for job search) you can claim.


What wage replacement benefits are there and what is the progression proviso?

The wage and income replacement benefits include, above all, unemployment benefit I (excluding Hartz IV), partial unemployment benefit, age transition benefit, the top-up amounts under the Part-Time Work Act, short-time work benefits, winter loss benefits, insolvency benefits and transition benefits. Sickness benefit, maternity benefit or parental benefit under the Federal Parental Benefit Act are also frequent replacement benefits, but they have nothing to do with unemployment. These wage replacement benefits are tax-free. However, they are taken into account when calculating the tax rate for the taxation of other taxable income (progression proviso).


Proof of wage replacement benefits

At the end of the year, recipients of wage replacement benefits receive a so-called proof of performance with the amount paid out from the social benefits providers without request. Reductions in benefits (e.g. due to assignment) are not taken into account. Wage replacement benefits paid by the employer, such as B. the short-time work allowance, are shown by the employer on the electronic income tax certificate. The compensation payments made are electronically transmitted by the paying office to the tax authorities and are available there for retrieval. It is not necessary to submit a corresponding paper certificate together with the tax return.