Unemployment and taxes

Unemployment has not only financial but also tax consequences. The most important points:

• Unemployment compensation is considered income and must be taxed. The compensation is subject to the same tax rates as regular income.
• Travelling expenses for job interviews and further training costs can be declared as deductions in the tax return and thus reduce the tax burden.
• Property taxes: Anyone who is unemployed must continue to pay wealth tax. These are based on total assets, regardless of employment status.
• Social benefits such as assistance with housing and healthcare costs are tax-free. It must be clarified which of these social benefits are tax-free or count as income.