Change of tax class during parental leave
May 14, 2010 | 15,00 EUR | answered by Michael Herrmann
Hello,
I am currently 19 weeks pregnant and am currently dealing with the topic of changing tax classes during parental leave.
I will be on maternity leave from 29.08. - 02.12. After that, parental leave begins.
Currently, my husband and I are in tax class IV.
I am wondering whether we should change tax classes during my parental leave.
My husband to tax class III and me to tax class V.
My current gross salary: 2,460 euros, my husband's is 2,100 euros.
The question is whether we can expect a tax refund and if so, whether changing tax classes would still be worth it.
I plan to return to work no later than August 2011. Will we both switch back to tax class IV then?
Thank you.
Dear questioner,
First of all, thank you very much for your inquiry, which I would be happy to answer based on the information you provided and in the context of your initial consultation. The response is based on the facts described. Missing or incorrect information about the actual circumstances can affect the legal outcome.
The wage tax deduction and the choice of tax classes are used to determine wage tax payments throughout the year as a deduction from wages that closely match the income tax liability. Wage tax is a form of collecting income tax, a kind of advance payment. Income tax is assessed by notice, with the wage tax paid being credited.
The wage tax and the tax class choice may affect the net wage depending on the tax class, but not the income tax to be paid. In a "favorable" wage tax class, less wage tax is withheld, but also less credited.
Therefore, the choice of tax class may not "pay off" in terms of saving taxes. However, it may be beneficial in terms of not withholding too much wage tax during the year and thereby financing high tax refunds.
Parental allowance is paid tax-free, but is subject to the progression clause. This means that the tax rate on the remaining taxable income increases. Therefore, if your husband chooses tax class III, there may be a certain amount of backpayment expected. However, since tax class IV would be much less favorable for your husband in this scenario, it would be advisable to set aside some of the higher net income from tax class III to cover any future back payments. This is a better solution than saving up for a tax refund throughout the year.
I hope this information has given you an initial overview of the situation and remain
Yours sincerely
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
