Einkünften

Einkünften is a German term that translates to "income" or "earnings" in English. It refers to any money or economic benefit received by an individual or entity within a specific period, typically a year. This encompasses a broad range of financial inflows.

Common sources of Einkünften include wages or salaries from employment, profits from self-employment or business operations, rental income from property, interest earned from savings or investments, dividends from stocks, and pensions or social security benefits. It also covers capital gains, which are profits made from selling assets like stocks or real estate for more than their purchase price.

In Germany, the concept of Einkünften is central to taxation. The Income Tax Act (Einkommensteuergesetz) defines various types of income that are subject to taxation. Individuals are generally required to declare their total Einkünften to the tax authorities, who then calculate the applicable income tax liability. Understanding the different categories of Einkünften is crucial for accurate tax reporting and financial planning. The net amount after deductions and taxes is what ultimately remains available to the recipient.