Can my choice of tax class be related to the amount of my income?
June 5, 2022 | 40,00 EUR | answered by Babette Schneider
Dear tax consultant,
My name is Heike Meyer and I have a question regarding my choice of tax class and the amount of my income. I work part-time and currently earn an average income. I recently got married and my husband earns significantly more than I do. We have chosen tax class IV/IV so far, but I am wondering if it might be more beneficial to choose a different combination of tax classes in order to save taxes.
My husband and I are considering whether our choice of tax class affects the amount of our tax burden. We would like to understand how the choice of tax class and the amount of our income are related and whether there might be a better choice for us to save taxes.
We are aware that the choice of tax class depends on various factors, such as the difference in earnings between spouses and possible tax benefits. We want to make sure that we choose the optimal tax class in order to avoid paying unnecessary taxes.
Could you please advise us on whether our choice of tax class and the amount of our income are related and whether it would be advisable to choose a different combination of tax classes in order to save taxes? We would greatly appreciate any potential solutions and recommendations.
Thank you in advance for your help.
Sincerely,
Heike Meyer
Dear Mrs. Meyer,
Thank you for your inquiry regarding the choice of your tax class and its impact on the amount of taxes you pay. Choosing the right tax class is indeed an important aspect that can affect the amount of taxes to be paid, especially for married couples with different incomes.
In Germany, there are a total of six different tax classes that are used for calculating income tax. For married couples, the combination IV/IV is usually chosen as this tax class combination evenly distributes the income tax burden between the spouses. However, in certain cases, it may be beneficial to choose a different tax class combination in order to save taxes.
If one spouse earns significantly more than the other, as is the case with you, it may be advantageous to choose a different tax class combination. In your case, for example, it could be beneficial for your husband to choose tax class III and for you to choose tax class V. This combination would result in your husband's income being taxed more heavily while your income is taxed less. This could potentially lead to a lower overall tax burden for both of you.
It is important to note, however, that the choice of tax class is not the only factor determining the amount of taxes to be paid. Other factors, such as tax breaks, deductible expenses, or special expenditures, can also have an impact on the final tax calculation.
To choose the optimal tax class for you and to save on taxes, I recommend seeking detailed tax advice. A tax advisor can analyze your individual situation and provide you with specific recommendations on which tax class is best suited for you.
I hope that this information has been helpful to you. If you have any further questions or would like more detailed advice, please do not hesitate to contact me.
Best regards,
Babette Schneider
