Navigating the world of taxes can feel like trying to solve a complex puzzle, especially when you're dealing with online filing systems. For those in Germany, ELSTER is the go-to platform for submitting your Steuererklärung (tax return) online. This guide aims to simplify the process for the 2020 tax year, providing you with a clear, step-by-step approach to get your taxes filed accurately and efficiently. Whether you're a seasoned filer or a first-timer, understanding the nuances of ELSTER can save you time and reduce potential headaches. So, let’s dive in and make tax season a little less daunting!

What is ELSTER?

ELSTER, which stands for Elektronische Steuererklärung (Electronic Tax Return), is the standard software interface used in Germany for electronic tax filing. Developed by the German tax authorities, it allows taxpayers to submit their tax returns, applications, and other tax-related documents securely online. Think of it as the digital gateway to the German tax office. Using ELSTER not only streamlines the tax filing process but also helps ensure accuracy and compliance with German tax laws. It's designed to be user-friendly, but like any government system, it can have its quirks, which we'll help you navigate.

Why Use ELSTER?

There are several compelling reasons to use ELSTER for your tax declaration:

• Convenience: File your taxes from the comfort of your home, at any time that suits you.
• Speed: Electronic submissions are generally processed faster than paper forms.
• Accuracy: The system includes built-in checks to help minimize errors.
• Security: ELSTER uses advanced encryption to protect your sensitive financial information.
• Eco-Friendly: Reduce paper consumption by submitting your documents digitally.

Getting Started with ELSTER

Before you can start filing your 2020 tax return, you need to register with ELSTER. Here’s how to get set up:

Registration

1. Visit the ELSTER Website: Go to the official ELSTER website (www.elster.de). Make sure you're on the legitimate site to avoid phishing scams.
2. Create an Account: Click on the registration link and follow the instructions. You'll need to provide personal information such as your tax identification number (Steueridentifikationsnummer) and date of birth.
3. Choose Authentication Method: You can choose between using an ELSTER certificate file or an electronic signature card for authentication. The certificate file is the most common option for individuals.
4. Verification: After submitting your registration, you'll receive an email with a confirmation link. Click the link to verify your email address.
5. Activation Code: You'll receive a letter with an activation code by postal mail. This code is necessary to complete the registration process. Once you receive it, log back into your ELSTER account and enter the code.

Software Options

While you can use the ELSTER online portal directly, many taxpayers prefer using dedicated tax software that integrates with ELSTER. These software solutions often provide a more user-friendly interface and additional features to help you optimize your tax return. Some popular options include:

• WISO Steuer: A comprehensive tax software with a user-friendly interface.
• Taxfix: A mobile app that simplifies the tax filing process with an interview-style format.
• Smartsteuer: An online tax tool that guides you through the tax return process.

Filing Your 2020 Steuererklärung

Once you're registered and have chosen your preferred software, you can start working on your 2020 Steuererklärung. Here’s a breakdown of the key steps:

Gathering Your Documents

Before you begin, gather all the necessary documents. This will make the process smoother and ensure you don't miss any important information. Key documents include:

• Income Statement (Lohnsteuerbescheinigung): This document, provided by your employer, summarizes your income and taxes withheld.
• Tax Identification Number (Steueridentifikationsnummer): You'll need this for identification purposes.
• Social Security Number (Sozialversicherungsnummer): If applicable.
• Bank Details (IBAN and BIC): For any tax refunds.
• Receipts for Deductible Expenses: This includes receipts for work-related expenses (Werbungskosten), healthcare costs, charitable donations, and other deductible items.

Completing the Tax Forms

Whether you're using the ELSTER portal or tax software, you'll need to fill out the relevant tax forms. The main form is the Einkommensteuererklärung (Income Tax Return), but you may also need additional forms depending on your specific circumstances. Some common forms include:

• Anlage N: For income from employment.
• Anlage S: For income from self-employment.
• Anlage R: For pension income.
• Anlage V: For income from renting and leasing.
• Anlage Kind: For child-related expenses and benefits.

Key Sections to Focus On

Werbungskosten (Work-Related Expenses): This is where you can deduct expenses related to your job, such as travel costs, professional development, and work equipment. Make sure to keep receipts for all expenses you claim.

Sonderausgaben (Special Expenses): This includes expenses like alimony payments, church tax, and contributions to certain insurance policies.

Außergewöhnliche Belastungen (Extraordinary Expenses): These are expenses that are unavoidable and exceed a reasonable level, such as medical expenses or costs related to a disability.

Submitting Your Tax Return

Once you've completed all the necessary forms, review your entries carefully to ensure accuracy. Then, submit your tax return electronically through ELSTER or your chosen tax software. You'll receive a confirmation message once your submission is successful.

Tips for a Smooth Tax Filing Experience

• Start Early: Don't wait until the last minute to file your taxes. Starting early gives you plenty of time to gather your documents and complete the forms without feeling rushed.
• Keep Organized: Maintain a well-organized system for storing your financial documents throughout the year. This will make tax season much easier.
• Utilize Tax Software: Consider using tax software to simplify the filing process and take advantage of features like automatic calculations and error checking.
• Seek Professional Help: If you're unsure about any aspect of your tax return, don't hesitate to seek professional help from a tax advisor (Steuerberater).
• Double-Check Everything: Before submitting your tax return, double-check all your entries to ensure accuracy. Even small errors can cause delays or lead to penalties.

Common Mistakes to Avoid

• Missing Deadlines: Be aware of the tax filing deadline and submit your return on time to avoid late penalties.
• Incorrect Information: Ensure that all information you provide is accurate and consistent with your supporting documents.
• Claiming Ineligible Deductions: Only claim deductions that you are legally entitled to. If you're unsure, consult a tax advisor.
• Ignoring Supporting Documents: Always keep supporting documents for all deductions and expenses you claim. You may need to provide these documents if your tax return is audited.
• Forgetting to Sign: If you're filing a paper tax return, don't forget to sign it. Unsigned tax returns are considered incomplete.

Understanding German Tax Law Changes for 2020

Staying updated on the latest changes in German tax law is crucial for accurate filing. For the 2020 tax year, be aware of any adjustments to tax brackets, deductions, and allowances. The German tax authorities often publish updates and guidelines on their website, so make sure to stay informed.

Resources and Support

• ELSTER Website: The official ELSTER website (www.elster.de) provides detailed information and support for electronic tax filing.
• Tax Software Providers: Companies like WISO, Taxfix, and Smartsteuer offer customer support and resources to help you use their software effectively.
• Tax Advisors (Steuerberater): A tax advisor can provide personalized advice and assistance with your tax return.
• German Tax Authorities (Finanzamt): Your local tax office can answer questions and provide guidance on tax-related matters.

Conclusion

Filing your Steuererklärung for 2020 via ELSTER doesn't have to be a stressful experience. By following this guide, gathering your documents, and utilizing the available resources, you can navigate the process with confidence. Remember to stay organized, double-check your entries, and seek help when needed. With a little preparation and attention to detail, you can ensure that your tax return is accurate, complete, and submitted on time. Happy filing, guys! And remember, staying informed and proactive is the key to mastering the German tax system.

Whether you decide to tackle it yourself or seek assistance, understanding the ins and outs of ELSTER is a valuable skill for anyone navigating the German tax landscape. Good luck with your 2020 tax return!