How are the tax classes coordinated for married couples?
December 5, 2022 | 40,00 EUR | answered by Babette Schneider
Dear tax advisor,
I am David Weber and I have a question regarding the alignment of tax classes for married couples. My wife and I have been married for three years and so far we have both been in tax class IV. We have heard that it may be advantageous to change tax classes under certain circumstances in order to save taxes.
Our current situation is as follows: My wife earns slightly less than I do, but we have both been in the same tax class so far. We have two children and we are unsure whether we should change our tax classes in order to benefit from lower tax rates. We would like to know how we can align our tax classes optimally in order to save as much tax as possible.
Our concerns are that we may not have been taking full advantage of the tax benefits for married couples and families and may be paying unnecessarily high taxes. We would like to find out if it makes sense to change tax classes and how we should best proceed.
Could you please explain to us how the alignment of tax classes for married couples works and what options there are for saving taxes? We would like to know if it would be advantageous for us to change tax classes and how we should proceed.
Thank you in advance for your help.
Best regards,
David Weber
Dear Mr. Weber,
Thank you for your inquiry regarding the alignment of tax classes for married couples. It is indeed a good idea to delve into this topic, as the right choice of tax class can have significant effects on the amount of taxes to be paid.
First of all, it is important to know that married couples generally have the choice between tax classes IV, IV with factor, III, and V. Tax class IV is the standard class for married couples, where both partners are classified in the same class. The income of both partners is added together and taxed according to the splitting method. This means that the tax burden is divided between both partners.
If one partner earns less than the other, it may be advisable to consider changing tax class. In your case, where your wife earns slightly less than you, it could be beneficial for your wife to choose tax class III and you to choose tax class V. By making this choice, the partner with the higher income would pay less taxes, as the tax burden is shifted to the partner with the lower income.
Furthermore, you may also consider tax class IV with factor. In this option, the income of both partners is combined, but a factor is applied to calculate the individual tax burden of each partner. This can lead to a fairer distribution of the tax burden.
To find the optimal tax class combination for you, I recommend conducting a precise calculation. You can consult a tax advisor or research online tax class calculators. It is also important to take into account the tax implications of children, as they can also have an impact on the tax burden.
In conclusion, I would like to emphasize that the choice of tax class is individual and dependent on various factors. It is advisable to seek comprehensive advice to find the optimal tax class combination for you and save as much tax as possible.
I hope this information has been helpful to you. If you have any further questions, please do not hesitate to contact me.
Best regards,
Babette Schneider
Tax Advisor
