Ask a tax advisor on the topic of Severance pay

Maximum net payout

August 12, 2010 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

I will receive a retroactive salary payment of approximately 15,000 EUR and a severance payment of 24,000 EUR in August. My monthly gross income is 4,103.33 EUR.

I am in tax class 3 and have 2 children.

What tax regulations/procedures can I take to ensure I receive the highest net payout?

Kind regards

Dipl.BW/SB Ulrich Stiller

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your situation in a first consultation as follows:

You can slightly reduce the progression in the context of salary payments by postponing the payment of the severance pay of €24,000 from August 2010 to September 2010. The payment amount for the severance pay would be €17,199 according to the splitting table without taking into account church tax.

Since you have to file an income tax return for 2010, any progression disadvantages that arise from the monthly payment now will ultimately be offset.

Sincerely,

Ulrich Stiller
Tax Advisor / Dipl. Business Economist