Can I also change my tax class as a retiree?
February 11, 2024 | 40,00 EUR | answered by Yvonne Schreiber
Dear tax advisor,
my name is Helma Rothammer and I am a retiree. In my previous working life, I was classified in tax class III. Now that I am receiving my pension, I am wondering if it is possible to change my tax class as a retiree.
Currently, I am in tax class III because my spouse earns less and is classified in tax class V. As a married couple, we have benefited from the combination of tax classes III and V, so I am unsure if it would be wise to change my tax class as a retiree.
I am concerned that changing my tax class could have negative implications on our financial situation. At the same time, I am wondering if there could be potential advantages if I were to switch to a different tax class as a retiree.
Could you please explain to me if it is even possible to change tax class as a retiree? And if so, what advantages and disadvantages a change in tax class could have for me as a retiree? What options are available to optimize my tax situation as a retiree?
Thank you in advance for your assistance and advice.
Best regards,
Helma Rothammer
Dear Mrs. Rothammer,
Thank you for your question regarding changing your tax class as a retiree. It is indeed possible to change your tax class even as a retiree. In your case, since you were previously classified in tax class III, it may be advisable to review and potentially adjust your tax class.
As a retiree, you have the option to switch to tax class IV if you are single or if you and your spouse earn roughly the same income and wish to be classified as such. Alternatively, you also have the option to switch to tax class V if your spouse has the higher income. In your case, this could mean that you could benefit from the more favorable tax class if your spouse remains in tax class V.
It is important to note that changing your tax class as a retiree can have implications on your tax situation. Switching to a different tax class can lead to a change in tax burden, which can have both advantages and disadvantages. In your case, switching to tax class IV could mean that you as a retiree may have to pay less taxes, as both partners earn roughly the same.
It is advisable to analyze your tax situation as a retiree together with your spouse and a tax advisor to find the best ways to optimize your tax situation. A tax advisor can help you weigh the pros and cons of switching tax classes and provide you with individual recommendations to optimize your finances.
I hope that this information has been helpful to you. If you have any further questions, please feel free to contact me.
Sincerely,
Yvonne Schreiber
