How it works: Adjusted net income

Many think that the adjusted net income in line with what one finds every month posted on its payroll. But this is not the case! Here is a brief guide for you, what exactly does an adjusted net income.

Serves on the taxable income

Adjusted net income for example, serves as the basis for the calculation of maintenance for children or a divorced spouse. It will be based your taxable income. following income, in that they are present with you will be added:

  • Income from sideline
  • tax refunds
  • allowances
  • parental benefits
  • Residential advantage through their own property
  • severance

None of these factors can be said lump sum that they are added in full to your net income. Whether and to what extent a factor is taken into account, is highly dependent on the individual case. There are constantly new court decisions on what will be credited with whom. How it an adjusted net income is an individual, very specific matter.

Deductible items in Adjusted net income

So you've added all the other relevant items in the first step to your taxable income. In the second step, various items are then subtracted to determine your adjusted net income. These factors are basically expenses that you have to make to ever achieve your income. The following factors are considered here:

  • Package (5 percent of income are generally recognized)
  • Travel expenses (like tax returns)
  • Purchase and cleaning of working clothes
  • work equipment
  • contributions to professional associations
  • Account management fees
  • Cleanup of living benefit
  • Increased demand due to illness
  • Private health insurance
  • Life and accident insurance
  • Retirement plans (Riester pension)
  • Child support (number can be considered)
  • Debt (must be scrutinized)

Especially the private health insurance can mean a significant difference due to the high posts! On relevant sites on the Internet these factors are explained in detail shortly. Adjusted net income requires quite a bit of time and patience for its calculation.


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