Field help:
10. Wages for multiple calendar years, compensation, e.g. severance payments
Enter the amount from line 10 of your employment tax statement:
"Wages for several calendar years, compensation, e.g. severance payments (included in 3, excluding 9)"
What is included?
- Compensation, particularly severance payments at the end of employment
- Wages for several years, e.g. jubilee bonuses, subsequent bonuses or late salary payments
Tax treatment
These extraordinary income can be tax-favoured under certain conditions according to the one-fifth rule (§ 34 EStG). The condition is that the payment is bundled in one calendar year and the income is therefore significantly higher than in previous years.
Income-related expenses that are directly related to the payment (e.g. legal or court costs) can be claimed as income-related expenses and must be entered separately under "Income-related expenses for compensation / wages for several years" in the tax return.
