Can I as a self-employed person also change tax class?
February 8, 2024 | 40,00 EUR | answered by Friedhelm Peters
Dear tax advisor,
My name is Xenia Hentschel and I am self-employed. In recent years, I have been in tax class IV, as my spouse is also employed. Now I have heard that there is also the possibility for self-employed individuals to change their tax class. As I am in a financially difficult situation and would like to optimize my taxes, I am very interested in this.
Currently, I am unsure if a tax class change is even possible for me as a self-employed individual and what requirements need to be met. I am worried that by changing tax class, I may face disadvantages or may not be able to pay my taxes correctly.
Could you please explain to me in more detail if and under what conditions I can change tax class as a self-employed individual? Are there specific criteria that I must meet in order to benefit from a change? What are the advantages and disadvantages associated with it, and how can I optimize my taxes as a result?
I look forward to your expert advice and thank you in advance for your support.
Sincerely,
Xenia Hentschel
Dear Ms. Hentschel,
Thank you for your inquiry regarding a possible change of tax class as a self-employed individual. I am pleased that you are actively addressing your tax situation and looking for ways to optimize your taxes. I would be happy to explain to you the options and requirements for changing tax classes as a self-employed individual.
In general, self-employed individuals have the possibility to change their tax class, even if they are not in an employment relationship. In your case, as a self-employed person, you can switch to tax class III if your spouse is not employed or has only low income. Tax class III generally offers more favorable tax rates than tax class IV and can therefore lead to a reduction in your tax burden.
To be able to switch to tax class III, you and your spouse must jointly submit an application for the tax class change to the tax office. You must provide evidence that your spouse is either not employed or has only low income. Additionally, you must be married and live in the same household.
One advantage of switching to tax class III is typically a lower tax burden, as the tax rates in this tax class are more favorable. This can mean relief for self-employed individuals who are in a financially difficult situation. However, it is important to note that switching to tax class III may also result in changes to the income tax prepayment, as your taxes may be pre-paid less on a monthly basis.
It is important that you seek precise advice before changing tax classes as a self-employed individual, in order to weigh all the pros and cons and ensure that the change is advantageous for you. I am available for further consultation and can help you optimize your tax situation.
I hope this information is helpful to you and I am available for any further questions.
Best regards,
Friedhelm Peters, Tax Advisor
