Are there special regulations for tax class during parental leave?
May 17, 2022 | 40,00 EUR | answered by Dirk Voigt
Dear Tax Advisor,
My name is Uwe Köhler and I have been working full-time in a company for many years. My wife and I recently had our first child, and she would like to take parental leave to take care of our baby. Since both of us work full-time, we are concerned that my wife's tax class could change during parental leave and affect our financial situation.
I have heard that there are special regulations for tax class during parental leave, but I am unsure if they apply to us. We would like to know if and how my wife's tax class will change during parental leave and if there are ways to avoid or optimize this. We are worried that an unfavorable tax class change could lead to financial losses and would like to take proactive steps to prevent this.
Could you please provide us with information on the special regulations for tax class during parental leave and the best course of action to optimize our financial situation during this time? We would be grateful for any information and support.
Thank you in advance for your assistance.
Sincerely,
Uwe Köhler
Dear Mr. Köhler,
Thank you for your inquiry regarding the tax class during parental leave. It is understandable that you are concerned about how your family's financial situation will be during this time. I am happy to provide you with information about the special regulations for the tax class during parental leave and how you can best proceed to avoid possible financial losses.
During parental leave, it is possible to change the tax class to reduce the financial burden. Usually, the tax class of the parent receiving parental allowance is changed to tax class III (for married couples) or tax class II (for single parents). This makes the parental allowance more tax-efficient and allows you to benefit from a lower tax rate.
To change the tax class, you must submit an application to your local tax office. This application should be submitted well before the start of parental leave to ensure that the change is implemented in time. Please note that the change of tax class during parental leave only applies for the duration of parental leave and will automatically revert to the previous tax class afterwards.
It is important that you contact your tax advisor early on to find the best solution for your individual situation. Your tax advisor can help you analyze the tax implications of parental leave and provide you with specific recommendations to optimize your financial situation.
In addition to a possible change in tax class, you should also check if you can take advantage of other tax benefits, such as child benefit or child allowance. Your tax advisor can provide comprehensive advice and help you maximize all available options.
I hope this information is helpful to you and allows you to better plan for your wife's parental leave. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Dirk Voigt
Tax Advisor
