Tax prepayments too high: apply to the tax office for an adjustment

Self-employed people and landlords pay income tax in quarterly prepayments. These are based on the last notice. If your profit falls, the prepayments are quickly too high and tie up unnecessary liquidity. You can apply to the tax office for an adjustment.

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Your chances of getting your money back

The tax office adjusts the prepayments on application to the expected income (§ 37 EStG). If your profit falls, you can apply for a reduction and thus avoid unnecessary prepayments.

Conversely, the tax office can also increase the prepayments if your income rises. A realistic adjustment protects against high back payments as well as against too-high prepayments.

What you should do now

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1. Estimate current income
Determine your expected income for the current year if it deviates significantly from the previous year.
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2. Apply for an adjustment
Apply informally to the tax office for a reduction of the prepayments and justify it with the changed income.
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3. Attach evidence
Prove the decline (e.g. business analysis, fewer orders).
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4. Keep the back payment in mind
Do not set it too low, otherwise a back payment with interest threatens later. The goal is a realistic amount.

How to spot the scam

You keep paying high prepayments although your profit has collapsed.
You set the prepayments too low and risk a high back payment.
The application is not justified and is rejected.

Frequently asked questions

Can I lower my tax prepayments?

Yes. The tax office adjusts the prepayments on application to the expected income (§ 37 EStG). If your profit has fallen, you can apply for a reduction and thus preserve your liquidity.

How do I apply for the adjustment?

Informally at the tax office, with a note about the changed income and, if possible, with evidence (e.g. a business analysis). The tax office then reassesses the prepayments.

What is the risk?

If you set the prepayments too low, a high back payment can arise at year-end, which is also charged interest. The goal is a realistic adjustment that is neither too high nor too low.

Take action now

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.