How can I optimize my tax class selection to save taxes?
December 15, 2023 | 40,00 EUR | answered by Babette Schneider
Dear tax advisor,
My name is Chloé Bergner and I am looking for ways to optimize my tax class selection in order to save taxes. At the moment, I am in tax class IV, as my spouse is also employed. However, I have the impression that we are paying too much taxes and would like to know if there is a better alternative.
Our current situation is as follows: My husband earns slightly more than I do, but we are both in tax class IV. We have no children and no exceptional tax deductions. I am wondering if it would be beneficial to choose a different tax class in order to pay less taxes.
My concerns mainly lie in the fact that we have to give a considerable amount of our income to the tax office every month. We would like to save or invest more money for our personal needs, rather than handing it over to the state. Therefore, I am looking for a solution to reduce our tax burden.
Could you please provide recommendations on how we can optimize our tax class selection to save taxes? Are there other tax classes that would be more advantageous for us? What criteria should we consider when choosing a tax class? I would greatly appreciate any support and advice from you.
Thank you in advance.
Kind regards,
Chloé Bergner
Dear Mrs. Bergner,
Thank you for your inquiry regarding optimizing your tax class selection to save taxes. It is understandable that you would like to save or invest more money for your personal needs instead of giving it to the tax authorities. I am happy to provide you with some recommendations on how you can reduce your tax burden.
First of all, it is important to know that tax class IV is the right choice when both spouses are employed and earn roughly the same amount. However, since your husband earns slightly more than you, it might be beneficial to consider switching to tax class III for your husband and tax class V for you. In this scenario, your husband would pay less taxes and you would have higher net salaries.
Another point to consider is tax class I. If you do not have children and cannot claim any exceptional tax deductions, tax class I might be more advantageous for you. In this tax class, singles or sole earners pay less taxes than in classes IV or III.
When choosing the optimal tax class, you should also consider the amount of your income as well as possible tax benefits such as work-related expenses, special expenses, or extraordinary burdens. These can affect your tax burden and may be important in deciding on the right tax class.
I recommend that you contact an experienced tax advisor to analyze your individual situation and find the suitable tax class for you and your spouse. A tax advisor can also help you take advantage of potential tax planning opportunities to optimize your tax burden.
If you have any further questions or need assistance, I am at your disposal. I hope that this information is helpful to you and wish you success in optimizing your tax class selection.
Kind regards,
Babette Schneider, Tax Advisor
