What remains of my severance pay after taxes?
November 9, 2011 | 50,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Dear Sir or Madam,
In 2010, my income was 66,000 euros (gross) + bonus of 13,000 euros (gross).
In 2011, I was laid off due to operational reasons on 31.10.2011.
Income: 55,000 euros (gross) + severance payment: 27,500 euros (gross).
Tax class 1, no church tax obligation, private health insurance.
How much will I have left from the 27,500 euros net and is it better to have it taxed according to the 1/5 rule?
Thank you for your prompt assistance.
Best regards.
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:
According to your information, you will not qualify for the "Fünftelregelung" (five-fifths rule) because the severance payment does not exceed the lost earnings but is significantly below it.
Without progressive income (such as unemployment benefits) and without any other income, the net severance payment without the "Fünftelregelung" that does not apply to you, amounts to Euro 15,382.
It is possible that by submitting your 2011 income tax return in 2012, you may still receive a refund, as you only worked until October 31, 2011.
I hope that my information has been helpful to you.
Kind regards,
Ulrich Stiller
Tax consultant/Diploma in Business Administration
... Are you also interested in this question? 
