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I registered as a freelancer in March and in addition to what I earned, I received a scholarship for a fellowship in the US for 5 months. I was told by the Finanzamt that the stipend from the scholarship is tax exempt but I would have to pay taxes and file it in tax returns.

I do not know how to pay taxes as I have never done that before and I do not know how to inform the authorities of the scholarship fund. I am now back in Hamburg. Is there anyone who could explain to me how to pay taxes and how the tax system works? Or is there any other place I could seek information from?
asked Oct 3, 2023 in Money by S3 | 705 views

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2 Answers

0 votes

Dear @S3,

Welcome back to the Wefugees Community and thank you for reaching out to us again.

I assume you haven't received an answer yet because not many people can share experience on this complicated and very specific topic (including me). If I am not mistaken, income tax help associations ("Lohnsteuerhilfevereine") do not offer their services to self-employed people (see also my answer here). One (expensive but safe) option would be to hire a tax consultant (Steuerberater). Maybe you can contact the "Social Impact Hub" in Hamburg for some tipps and recommendations. Furthermore, the Chamber of Commerce offers counselling services for new business founders. The city of Hamburg has a service called "Firmenhilfe" as well - maybe they can also be helpful.

I hope my answer is useful to you -in any case, don't hesitate to keep us updated or to get back to us with any further questions.

All the best,

Meike

answered Oct 22, 2023 by Meike
0 votes
Thank you very much. I will contact the services you have mentioned to see what they offer. For those who might find it helpful, I will share what I have learned so far.

Generally I was able to learn recently that everything is declared together in the following year with the tax returns - I believe this is a form that is submitted via ELSTER. For any income that can be deemed as exemptions I would still have to declare it on the returns form but also provide documentation as to the nature supporting exemption (e.g. that the scholarship is funded by a non-profit organisation and from public funds etc.) There are several items that can be deducted from taxes such as health insurance and pension payments, work related costs such as the purchase of specific items (e.g. laptop, charging devices, microsoft applications etc.). However I think speaking to a tax advisor might be helpful to identify these things.
After the tax returns are filed you would receive a communication from the Tax Office invoicing you for whatever you need to pay and they will also inform you payment details such as account numbers, method and deadlines. The deadlines I believe are usually lenient, as in if the amounts are large it can be paid in instalments.

I hope this is helpful.

Best wishes,
answered Oct 23, 2023 by S3
Dear @S3, Thank you very much for your reply and the interesting information you share with us! All the best, Meike
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