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Tax prepayment

December 27, 2011 | 25,00 EUR | answered by Oliver Burchardt

Hello,

I have a question regarding the following situation:

I have been granted an extension by the tax office for my 2010 tax return until 31.12.2011. After entering all the data into Steuerfuchs, my wife and I are expecting a significant additional payment due to tax classes 3/5 and parental allowance in 2010.

According to the program, I can expect an additional payment of 1850 euros, while my wife will receive a refund of 1200 euros (definitive additional payment of 650 euros). In the case of joint assessment, we can expect an additional payment of 831 euros.

Now here is my question:

Do I/we still have to make tax advance payments for the entire year 2011 despite submitting the tax return by 31.12.2011?

Would it be more advantageous to choose joint assessment in order to keep the tax advance payments lower?

In this case, how high could the tax advance payments be for me, or for both of us in the case of joint assessment?

For the year 2011, the tax classes were changed back to 4/4 from 01.04.

Oliver Burchardt

Dear inquirer,

Thank you for your inquiry, which I am happy to answer as part of an initial consultation.

If, as I assume based on your description of the situation, you only have income from employment, you will not have to make any advance payments for the year 2011. The tax for the year 2011 will be determined as part of the tax return to be filed in 2012. Depending on your income situation, this may result in a refund or additional payment.

Whether a joint assessment should be made to minimize the tax burden or whether separate assessment is better is a question that can only be answered in each specific case after considering all facts.

I hope I have been able to assist you with your query.

Yours sincerely,

Oliver Burchardt
Certified Public Accountant