Change of tax class
January 3, 2013 | 40,00 EUR | answered by Dr. Yanqiong Bolik
Dear Sir or Madam,
Since the beginning of 2012, our income situation has changed due to illness. In the first half of 2012, my husband received sickness benefits. Since 01.06.12, he has been receiving a temporary disability pension due to full incapacity for work in the amount of 1,094€ gross (982€ net). He holds a temporary disabled ID card (degree of disability: 50).
As a wife, I earn 1,315€ gross. Is it advisable to switch to tax class IV / IV (instead of V / III as before) or would the combination of IV factor / IV factor be more advantageous?
Thank you in advance for your response.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your contribution and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can alter the tax result.
To answer the question of which tax class combination is advantageous, one must first know what they want to achieve.
If you want to have high liquidity on a monthly basis, meaning more net income available throughout the year, then the tax class combination V (for your husband) / III (for you) is favorable.
However, the choice of tax class does not affect the tax assessment after the end of the assessment period. It only affects what is netted from the salary at the end of the month.
Income tax is a kind of advance payment of income tax. During the annual income tax assessment, your income tax will be determined based on your income ratio, regardless of the tax class combination you have. If the tax prepayments are too low, a tax payment must be made. Conversely, if the tax prepayments are too high, a tax refund arises.
I hope I was able to assist you.
If there is still any uncertainty, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: steuer@zdbz.de
www.steuerberatung.zdbz.de
