Steuererklärung (tax return) for Self-Employed Individuals 2026: Tax Types, Software, and Practical Tips

Tax returns are a mandatory part of being self-employed. They are required by law but also provide an opportunity to better understand your own finances and save on taxes in a targeted manner. With the right knowledge, suitable tools, and good preparation, you can prepare your tax return yourself or submit all documents to a tax advisor. This guide shows you step-by-step how to do it.

Basics and Mandatory Filing

Who must file a tax return?

Every self-employed person is required to file an annual income tax return. This applies to:

• Freelancers (e.g., designers, journalists, healthcare professions)
• Tradespeople (e.g., online retailers, craftsmen, consultants)
• Small business owners
• Solo-self-employed and start-up founders

Freelancer or Tradesperson?

This distinction is important because it has an impact on trade tax:

• Freelancers do not have to pay trade tax.
• Tradespeople must pay trade tax starting from a profit of 24,500 euros per year.

In case of doubt, the tax office decides whether your activity is classified as freelance or commercial.

Tax Identification Number vs. Tax Number

• The tax identification number (IdNr.) is assigned to every natural person automatically.
• The tax number is assigned by the tax office as soon as you register your self-employment.

Overview of Relevant Tax Types

1. Income Tax

Income tax is based on your profit, meaning:

Self-employed individuals usually use the net income method (EÜR). It is easy to implement and does not require double-entry bookkeeping.

Example: Income 30,000 euros, expenses 12,000 euros → Profit = 18,000 euros

Basic tax-free allowance 2024: 12,096 euros (single) or 24,192 euros (married) and will be increased again in 2026. Income tax is only due on profits exceeding this amount. (Source: Federal Ministry of Finance)

Tax prepayments: The tax office can request quarterly prepayments based on the previous year’s profit.

2. Value Added Tax (VAT)

• Value added tax (VAT) is a tax on supplies and services.
• You must regularly pay it to the tax office via advance VAT returns (monthly or quarterly).
• The annual VAT return takes place at the end of the year.

Small business regulation:

If your turnover as a small business owner in the previous year was less than 25,000 euros and does not exceed 100,000 euros in the current year, you can use the small business regulation. As soon as your turnover exceeds 100,000 euros, the small business regulation no longer applies.

What does this mean in practice?

• No VAT on invoices
• You do not have to submit advance VAT returns
• You are not allowed to deduct input tax
• Mandatory statement: “No VAT is charged in accordance with Section 19 UStG”
• EÜR still remains necessary

3. Trade tax

• Only relevant for tradespeople
• Tax-free allowance: 24,500 euros profit per year
• The amount to be paid depends on the assessment rate (Hebesatz) of the respective municipality (usually between 200% and 400%).

Tax tips for career starters and business founders

• Tax registration questionnaire: Must be submitted electronically via ELSTER within four weeks of starting self-employment.
• Provide realistic turnover estimates: This information influences whether you start as a small business owner and whether advance payments become due.
• Record business expenses from the start: Including start-up costs, consulting, furnishing, etc.
• Use a business account: A clear separation of private and business payments saves a lot of effort later.

Working with tax advisors: When is it useful?

A tax advisor is not absolutely necessary, but can save you work and reduce uncertainty in many situations:

Advantages of working together:

• Legally compliant preparation of your tax return, EÜR and VAT advance notification
• Advice on complex tax issues
• Representation before the tax office (e.g. during audits or appeals)
• Optimization of your tax planning

A tax advisor is particularly useful if:

• your business is growing or you employ staff
• you have complex sources of income (e.g. international business, secondary activities)
• you want to spend as little time as possible on tax matters
• you already have to make advance payments or are planning major investments

How to prepare optimally for the collaboration:

• Use invoicing software like easybill to create clean outgoing invoices
• Export your data in DATEV format, which your tax advisor can process directly
• Record all receipts, expenses and bookings in a structured way
• Keep important documents (e.g. bank statements, contracts) organized and ready

Practical guide for your tax return

Step 1: Preparation is everything

You should have these documents ready:

• Bank statements and cash books
• Incoming and outgoing invoices
• Receipts for business expenses
• Logbook (if company vehicle)
• Contracts, proof of rent, insurance documents

Tip: All tax-relevant documents must be kept for 8 years (Note: the retention period was shortened in 2025 in ).

Step 2: Use the right forms

As a self-employed person, you need the following forms:

• Mantelbogen (Personal master data)
• Anlage EÜR (Income-surplus statement)
• Anlage S (Freelancers) or Anlage G (Traders)
• VAT return (if not a small business owner)
• Annex for Special Expenses / Pension Expenses (e.g. health insurance)

Step 3: Use tools

If you want to prepare your tax return yourself, you can use various tax software solutions.

ELSTER (elster.de):

• Official, free platform of the tax administration
• Direct transmission of your tax return to the tax office
• Slightly more technical, but legally secure
• Note: Registration takes a few days because an activation code is sent by mail

Commercial providers:

• Lexware (e.g. buchhalter or steuer:office):
  • Preparation of EÜR, advance VAT returns and tax returns
  • Connection to easybill possible
• Wolters Kluwer (e.g. ADDISON OneClick):
  • Collaboration with tax consultants via digital platform
  • Compatible with easybill data
• steueragenten.de:
  • Digital tax consultancy with a direct connection to easybill
  • Ideal if you want to outsource your taxes completely

Step 4: Observe deadlines

• The regular submission deadline for the 2025 tax return is July 31, 2026.
• When using a tax consultant, the deadline is automatically extended to February 28, 2027.
• A deadline extension is possible, but should be applied for in good time.
• Delay can lead to surcharges or an estimation of the tax base.

Save on taxes: What you can deduct

You can claim the following business expenses for tax purposes:

• Rent for office or co-working space
• Work equipment (laptop, software, mobile phone)
• Travel costs, travel expenses (incl. meals)
• Telephone and internet
• Continuing education and training
• Insurance (e.g., professional liability insurance)

Special cases in detail:

• Home office: Only deductible if used exclusively for professional purposes.
• Car usage: Logbook or 1% rule to distinguish between private and business costs.
• Low-value assets (LVA): Immediate write-off possible up to 800 euros net.
• Depreciation (AfA): For fixed assets such as computers, office furniture, machinery.
• Retirement provision as special expenses: Self-employed individuals can claim contributions to a basic pension (Rürup pension) for tax purposes.
• Health and long-term care insurance count as special expenses and have a tax-reducing effect.

Tax returns are no longer a problem thanks to digitalization

The tax return does not have to be a mystery. With structured preparation, an understanding of the most important types of taxes, and the use of suitable tools such as easybill or ELSTER, you can take your taxes into your own hands. This not only saves money but also promotes your understanding of business relationships.

Particularly as a startup founder or small business owner, it makes sense to understand and professionally implement tax obligations right from the start. With a little discipline and the right tools, you will succeed without any problems.