Can I change the tax bracket during the year?
March 12, 2022 | 40,00 EUR | answered by Dirk Voigt
Dear tax advisor,
my name is Theodor Schwaru and I work as a full-time employee. Since the beginning of the year, I have been in tax class III, as my wife is not employed. However, my professional situation has changed significantly in recent months, and I now have a higher income than before. Therefore, I am wondering if it is possible to change tax classes during the current year in order to adjust my tax burden accordingly.
My concerns revolve around the fear of having to pay too much taxes at the end of the year if I remain in the wrong tax class. Additionally, I want to ensure that I do not miss out on any tax benefits that may be available to me with a change in tax class.
Could you please let me know if it is possible to change tax classes during the current year and what steps I need to take for this? Are there specific deadlines that I need to be aware of, and what impact does a change in tax class have on my tax burden?
Thank you in advance for your support and advice.
Best regards,
Theodor Schwaru
Dear Mr. Schwaru,
Thank you for your question regarding tax classes. I understand your concerns regarding your current professional situation and the possible impact on your tax burden. I would be happy to help you clarify and provide you with the necessary information to change your tax class during the current year.
In principle, it is possible to change the tax class during the current year. This may be advisable, for example, if your income situation changes, as is the case with you. Changing tax class can help adjust your tax burden accordingly and optimize potential tax benefits.
To change your tax class, you will need to submit an application for a tax reduction at the tax office. This application includes the change of tax class as well as any additional information regarding your income situation. It is important that you submit the application in a timely manner, as the tax office requires a certain processing time. Generally, the application should be submitted no later than November 30 of the current year in order for the change to take effect at the beginning of the year.
Changing tax class has direct implications on your tax burden. In your case, for example, if you switch from tax class III to tax class IV, your monthly net income will initially increase as less income tax will be deducted. However, you may have to pay additional taxes at the end of the year if your income situation changes throughout the year.
Therefore, it is advisable to regularly review your income situation and make adjustments to your tax class if necessary. I am also available to personally assist you in analyzing your individual situation more closely and supporting you in changing your tax class.
I hope this information is helpful and answers your questions. If you need further assistance, please do not hesitate to contact me.
Best regards,
Dirk Voigt, Tax Advisor
