What is the best solution for me regarding the tax on the severance payment?
August 28, 2013 | 30,00 EUR | answered by Dr. Yanqiong Bolik
Hello,
my employer has offered me a termination agreement with a severance payment.
I have been on parental leave for several years (with 2 children) and had no parental benefits in the last year, so no income.
The severance payment would be 5400€, not a high amount. So my question now is, how does it look with the tax.
I am married, my husband works, and we always file our taxes jointly. Can you give me a tip on how to best handle this? Is the amount too low to pay high taxes, or do we need to change tax brackets...?
Dear inquirer,
Thank you for your inquiry, which I will gladly answer, taking into account your efforts 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 the information can change the tax outcome. Please note that this cannot replace individual comprehensive advice.
If you do not have any other income from employment in the current year, have tax class 4, and have a child allowance but no other allowances/reduction amounts to consider, then there will be no income tax on a severance payment of 5400 EUR. However, if you have tax class 5 and do not meet the conditions for the fifth rule, the income tax in this scenario will be 520 EUR.
Changing your tax class will also change your spouse's tax class. Therefore, it is not possible to determine remotely whether changing your tax class will be advantageous for the overall tax deduction for spouses. Additionally, income tax withholding is just one form of income tax prepayment. Your tax class generally does not affect the determination of your final income tax after the end of the calendar year. Instead, you should assess after the end of the year whether separate assessment will be more beneficial for you than joint assessment.
I hope I was able to assist you.
If there are still uncertainties, 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.dr-bolik.de
