Submit your tax return retroactively: This is how you get money back for the last few years – with interest

What would you say if the state gave you a few hundred euros? Sounds tempting, right? You may not know it, but many of you are entitled to a three or even four-digit tax refund. Some people may unconsciously go without a hefty sum for years.

1. Who can file the tax return retroactively?

2. Worthwhile tax refund

3. Easier with tax software

4. Submission also for individual years

5. Additional payment? No problem

6. Special case for students

7. Conclusion

By filing your tax return retroactively, you can secure this refund later. Excluded from this are groups that are generally obliged to file a tax return, as they have to submit their return on time every year. Everyone else shouldn’t miss their chance to get the extra money.

Who can file the tax return retroactively?

All citizens who are not obliged to submit a tax return can, in principle, submit a tax return voluntarily. This may take a bit of work, but for most people the effort is worth it. You can almost always deduct something from your taxes, for example travel expenses or flat-rate amounts.

In the best case scenario, such amounts ensure that the tax office transfers a large tax refund to your account. Some people quickly get a few hundred euros or even more. Money that can be put to good use in the current times. Maybe this has convinced you to file a tax return in the future, but what about the past few years.

According to tax law, you can file your tax return up to four years later. For example, if we assume the year 2023, you can still prepare a tax return for the years 2022, 2021, 2020 and 2019 and file it with the tax office. You will receive the refund you are entitled to without any deductions. Even better. Interest may even be added.

Refund with interest: is it worth waiting?

However, interest on tax refunds only accrues if the year in question was 15 months or more ago. Until a few years ago, this was really worth it for taxpayers, as the interest rate here was set at six percent. For many people who are not required to file a tax return, this was even a reason to deliberately submit their tax return later.

In 2019, however, the federal government reduced interest rates to 1.8 percent. With inflation taken into account, the subsequent submission is usually no more worthwhile than if you did it straight away. But even without high interest income: you still shouldn’t miss out on the refund amount for previous years.

That’s why the tax refund is worth it

After all, according to the Federal Statistical Office, the average amount for repayments is 1,095 euros. You can expect particularly high repayments if you…

• had high expenses for advertising costs related to your job.
• you had extraordinary stress, for example due to illness.
• you have used tradesmen or household-related services such as household help or gardeners.
• you have special expenses such as donations or money for child care.

Thanks to tax software: tax declaration made easy

Submitting a tax return generally or retroactively is not as difficult as many people believe. Of course, you can hire a tax advisor to do the work for you. However, he also demands a corresponding sum for his services. In most cases, there isn’t much left over from the refund at the end.

We therefore recommend using tax software. Even if some people may still have reservations about digital tax assistants, in recent years they have become increasingly reliable and easier to use.

For example, you can easily use tax programs such as the tax bot on your cell phone, while a small robot simply asks you a few questions in a WhatsApp-like chat process. Half an hour later your tax return is ready. You can see how much money will be refunded to you when you fill out the declaration with the program.

With almost all known tax programs you can do your tax return retroactively. Anyone who has previously had their data deposited with the tax office can even access it directly for future years and thus save even more time when filling out the retroactive tax return.

Since the programs usually also have a direct Elster interface, you can send the tax returns for the last four years to the tax office with just one click. Then you just have to wait for the tax assessment.

Retroactive tax returns are also possible for individual years

It is up to you whether you submit your tax return retroactively for all four years, only for individual years or continue to do so irregularly in the future. The only important thing is that you stick to the deadlines. In 2023, for example, you can retroactively submit your tax return for only 2020 and 2022. However, we advise you to submit a return for all four past years if possible, otherwise you will usually be wasting money.

Notice: If you submit your tax return regularly voluntarily over several years, it may happen that the tax office will send you a request for a tax return if you pause filing for a year. You cannot ignore this notice. You should then contact the tax office and inform them that you do not want to submit a declaration for this year.

Suddenly additional payment? No problem thanks to objection

Even though a tax return usually results in a tax refund, some people also receive a request to pay back taxes. Then of course it’s annoying that you even filed a tax return, isn’t it?

Not really, because you can simply withdraw your tax return from the tax office. You have one month after receiving the back payment notice to lodge an objection with the tax office. This means that the tax return is retroactively considered invalid, as if you had never submitted it. You then no longer have to make the repayment.

Special case of students: declaration of loss for up to 7 years

One of the few exceptions to the four-year rule are students. As such, you can also submit your tax return (in this case called a loss declaration) seven years retroactively if you have recorded losses.

As a student, you don’t pay taxes (as long as your earnings are below the basic allowance), but you can claim the losses from your years of study, for example, after you finish your studies. This is then called loss carryforward. To request a refund, you must request a separate loss assessment.

Here too, tax software will help you. They often have a corresponding function that you can use to determine a loss. And as we all know, studying isn’t cheap: laptops, travel costs, textbooks, tuition fees – there’s a lot that comes into play.

Since the loss assessment is valid seven years retroactively, you can do it in 2023 for the years up to 2016. However, there is a catch: you can only claim the loss assessment if you have completed a second degree (master’s degree) in the relevant period or you can provide evidence of prior vocational training (bachelor’s degree).

Conclusion: Voluntary tax returns are always worthwhile

In principle, a voluntary tax return is always worthwhile. Even if there is an additional tax payment, you can lodge an objection quickly and easily, which means that in the worst case scenario you neither receive nor lose any money. But it’s rare that there isn’t at least one loan over four or seven years where you can expect a repayment.

Thanks to tax software, it doesn’t take long for you to fill out your tax returns retroactively. Usually one afternoon is enough, which you have to invest time in. For potentially several hundred or over a thousand euros that you will get out of it, the few hours are hardly worth mentioning.

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