Can I switch to a different tax bracket as a student to save taxes?
November 11, 2022 | 40,00 EUR | answered by Dirk Voigt
Dear tax advisor,
My name is Ella Endres and I am a student in the final semester of my bachelor's degree. Up to now, I have been classified in tax class I, as I did not have any other income as a student. However, I have now found a job as a working student and earn approximately 800 euros per month. Since I only work during the semester holidays, my annual income will be below the basic tax allowance.
My question is whether it is possible for me as a student to switch to a different tax class in order to save on taxes. I have heard that students may benefit from a lower tax rate in a different tax class. As a working student who does not exceed the basic tax allowance, I wonder if it would be advisable for me to reclassify myself and if this could result in tax benefits for me.
I am concerned that I may have to pay more taxes than necessary due to my work as a working student and would like to know if there are ways for me as a student to save on taxes. I would greatly appreciate your assessment and any possible solutions.
Thank you in advance for your help.
Best regards,
Ella Endres
Dear Ms. Endres,
Thank you for your inquiry regarding your tax class as a student with a part-time job. It is understandable that you are wondering if it is possible for you as a student to switch to a different tax class in order to save taxes.
In Germany, employees are classified into a specific tax class based on their personal life situation. As a student with no other income, you have been classified in tax class I, which is the standard class for single employees. With your part-time job and a monthly income of approximately 800 euros, you continue to be in tax class I.
It is important to note that the basic tax exemption for the year 2021 is 9,744 euros. Since you are expected to earn below this amount, you will not have to pay income tax as a student. This applies regardless of your tax class. Even if you were to switch to a different tax class, it would not bring any tax benefits in your case, as your income is below the basic exemption amount.
As a student with a part-time job, you do have the opportunity to save taxes by claiming deductible expenses such as commuting costs to your workplace, work-related expenses, or professional literature. You can declare these expenses in your tax return and deduct them from your taxable income.
Overall, it is not necessary or advisable for you as a student with a part-time job to switch to a different tax class, as you are likely not required to pay income tax and your income is below the basic exemption amount. Instead, take advantage of the opportunity to claim deductible expenses to save on taxes.
I hope this information helps and answers your question. If you have any further questions, please feel free to contact me.
Best regards,
Dirk Voigt
Tax Advisor
