(2022)
Where are expense allowances for municipal councillors entered?
Enter expense allowances for municipal councillors under income from employment in the section "Other income > Tax-free expense allowances".
Expense allowances from federal or state funds, specified in a federal or state law or regulation and listed as expense allowances in the budget, are always fully tax-free (§ 3 No. 12 Sentence 1 EStG).
However, expense allowances from public funds paid for public services are tax-free up to 250 Euro (until 2020: 200 Euro) per month (§ 3 No. 12 Sentence 2 EStG). For voluntary part-time work for a charitable organisation, 840 Euro (until 2020: 720 Euro) of the income is tax-free annually under § 3 No. 26a EStG, provided you cannot prove higher expenses.
