How can I change my tax class?
April 26, 2023 | 40,00 EUR | answered by Babette Schneider
Dear tax consultant,
my name is Hilde Schottmann and I am currently in tax class III. I work full-time and earn more than my spouse, who works part-time. I have heard that it might be advantageous to switch to tax class V in order to pay less taxes. I am concerned that we may be paying too much taxes under the current tax class III and would like to know if switching tax classes would make sense for us.
I have heard that there are certain requirements that need to be met for switching tax classes and would like to know from you which criteria are relevant. Are there specific deadlines that I need to be aware of in order to switch tax classes? How exactly does the process of switching tax classes work and what documents are needed for it?
Furthermore, I would like to know what impact switching tax classes could have on my financial situation. Could we actually save taxes by switching tax classes? Are there any potential disadvantages that we should consider?
I would greatly appreciate your expertise and advice on this matter and hope that you can assist me. Thank you in advance.
Sincerely,
Hilde Schottmann
Dear Mrs. Schottmann,
Thank you for your inquiry regarding a possible change of tax class. As a tax consultant, I would be happy to assist you in making the best decision for you.
First of all, I would like to point out that switching from tax class III to tax class V can indeed be advantageous under certain circumstances, especially if you as a full-time employee earn more than your spouse, who works part-time. By switching to tax class V, your spouse would switch to tax class III, which could result in a lower overall tax burden.
To change tax class, both of you as a married couple must submit an application to your local tax office. Certain criteria must be met, such as filing a joint income tax return and living in the same household. There are no strict deadlines that you need to adhere to, but it is recommended to submit the application in a timely manner in order to benefit from the new tax class for the current year.
For changing tax class, you usually need the marriage certificate, salary statements, and possibly other documents that the tax office requires to assess your circumstances.
Changing tax class can indeed result in lower taxes for you as a couple. This is because tax classes III and V are designed for married couples with different incomes in order to fairly distribute the tax burden. However, you also need to consider potential drawbacks, such as a possible higher tax payment at the end of the year or a change in net income.
Therefore, it is advisable to seek advice from a tax consultant before changing tax class in order to weigh all the pros and cons and make the best decision for your financial situation.
I hope this information is helpful to you and I am available for any further questions.
Best regards,
Babette Schneider, Tax Consultant
