Vacation job paying taxes – does it have to be? Yes, that’s what distinguishes serious and well-paid jobs. The good news: Who in 2020 no more than good 10.000 Euro per year earned by his jobs, he will get everything back in 2021. This applies to most jobbers, whether students or pupils. But: If you want to get your tax money back, you also have to file a tax return.
Vacation job paying taxes – many young temps are not spared from this either. But those who have to pay taxes on a vacation job usually have a good chance of getting back the overpaid tax money in the coming year. – Image: Robert Kneschke – fotolia.com
Why do I have to pay taxes on my vacation job?
Vacations at last, time to earn a few euros. Or even a few more. Thousands of pupils and students use the vacation season like this. If you are 13 or 14, you are allowed to have a casual job. That means no more than two hours a day, working hours are between eight o’clock and 18 o’clock. Parents must give their consent. It gets more interesting from the age of 15: Then you are allowed to work up to 40 hours a week. However, there are some restrictions. For example, the vacation job must not be physically or mentally stressful. By the way, many employers are even desperately looking for young temporary workers. Because this helps the companies to keep the business running during the vacation period.
"Natural persons who have a domicile or habitual residence in Germany are subject to unlimited income tax liability."
Don’t panic: Who had to pay taxes from the hard-earned money in the vacation job, gets the tax money back in full as a rule.
I had to pay taxes on my summer job – under what conditions do I get the money back??
Most pupils or students certainly lack the time to work so much that they come with the earnings above the basic tax-free amount. Income that remains below the basic allowance is not taxed. A short calculation from when you have to pay taxes on a vacation job:
|Basic tax-free amount 2020 (single person)||9.408,00 Euro|
|Employee lump sum (income-related expenses)||+||1.000,00 Euro|
|Special expenses lump sum||+||36.00 Euro|
The annual income may thus in the year 2020 maximally 10.444 Euro not to exceed. Then pupils and students get back the withheld tax money. Theoretically, it could be even up to 1900 euros more (Vorsorgepauschale). But students usually do not pay contributions to health, nursing care and pension insurance. And student health insurance contributions are usually kept within manageable limits.
Nevertheless: First the employer deducts taxes. It is quite important for all, which had to pay taxes in the vacation job: In the following year, so now, in 2021, a tax return for 2020 must be submitted.
"It’s a good idea for vacation jobbers to leave the tax return to a Lohnsteuerhilfeverein," says Bernd Werner, board member of Lohnsteuerhilfe fur Arbeitnehmer e. V., Wage tax assistance association, seat Gladbeck: "That does not cost much and the experts take care then of everything. Those who do not take advantage of this run the risk of giving it all away. We have observed this so often that the tax return is forgotten the next year. Maybe there was also time stress, or a thousand other reasons. In the result however then the tax money was away."
Do I have to pay taxes on every vacation job?
The exception is the mini-job. Marginal employment up to 450 euros must be registered. The employer then pays social security and 2% flat-rate tax – a total of 30%. The employee, i.e. the mini-jobber, then receives up to 450 euros gross as net.
What about social security?
Social insurance includes health, pension and long-term care insurance. Here the calculation is different from taxes. There is the so-called "short-term employment". This means that the vacation job must not last longer than 3 months or 70 working days per year.
Pupils pay no contributions to social insurance if their job is a short-term employment.
Students are exempt from pension and nursing care insurance in the case of short-term employment. However, there are special features for health insurance. If you are insured through your parents and their family insurance, you are not allowed to earn more than 450 Euro per month with a job in most cases. Those who want to earn more should check what health insurance for students costs. In many cases the change can be worthwhile.
However, there are a few other exceptions. Among other things in these cases, all social security contributions are still due, for pupils as well as students:
- the vacation job is before the start of training;
- A voluntary social year begins after the vacation job, or the vacation job begins when the voluntary social year has ended;
- a dual course of study begins after the vacation job.
Students who work more than 70 days a year still have an option: they remain free of social security contributions if they take a 450-euro mini-job.
What about the child benefit if you have to pay taxes on the vacation job?
Child benefit is paid, no matter how much a vacation jobber earns. Child benefit is generally paid until the age of 18. Year of life paid. However, child benefit is also available up to the age of 25. the first year of your life if you are still in your first apprenticeship or first study. By the way, child benefit will continue to be paid even if you cannot start vocational training because there is no apprenticeship place available. During the transitional period between school and training or study, child benefit will continue to be paid. However, this transition period may not last longer than four months.
Important: Union officials recommend that students only start a summer job with a contract that clearly outlines tasks, hours and pay.