Tax refund is a process whereby a person uses his right to claim back for the tax that has been made from his salary to the German Tax System. However, in case of a student, tax refund can only be applied for if the total gross annual income does not exceed € 8652. This limit has been set in order to discourage students in Germany from working too intensively during the course of their studies. An annual earning exceeding € 8652 is taxable according to the German law, and the tax amount can amount to € 1000 or more depending on the total gross annual income of the student. Hence, due to the excessive income tax rates, it is advisable that the student maintain a check on their annual gross income.
The Tax Office, known as Finanzamt in German, is responsible for tax refund in Germany.