How do I calculate my taxable income in my tax bracket?
August 26, 2023 | 40,00 EUR | answered by Yvonne Schreiber
Dear tax consultant,
my name is Dirk Hoffmann and I am currently a bit confused about the calculation of my taxable income in my tax class. I work as a full-time employee and earn a monthly gross salary. My wife is currently on parental leave and receives parental allowance. We have two children for whom we receive child benefit. So far, I have never delved into the topic of tax classes and income tax, as my employer automatically withholds the income tax.
However, I am now wondering how my taxable income is calculated and, more importantly, how I can optimally use the tax class combination as a married person. I am concerned that we may be paying too much tax or that we are not taking advantage of important tax benefits.
Could you please explain to me how the taxable income is calculated in my tax class and what factors play a role in this calculation? Are there ways to optimize my taxable income through certain tax measures? I would be very grateful for a detailed explanation and, if possible, tips for tax optimization in my situation.
Thank you in advance for your support.
Best regards,
Dirk Hoffmann
Dear Mr. Hoffmann,
Thank you for your inquiry and your interest in optimizing your tax situation in the married tax class. I am happy to explain to you how the taxable income is calculated in your tax class and which factors play a role in this process.
The taxable income is determined by subtracting your gross salary from deductions such as business expenses, special expenses, extraordinary burdens, and pension contributions. Business expenses include all costs related to your job, such as travel expenses to work, work materials, or training costs. Special expenses include expenses such as donations, church tax, or insurance premiums. Extraordinary burdens can include medical expenses or costs for caring for relatives. Pension contributions are contributions to health insurance, pension insurance, and long-term care insurance.
In your tax class as a married individual, the income of your spouse also plays a role, especially the parental allowance and child benefit. These incomes are also taken into account when calculating the taxable income. There are various tax measures to optimize your taxable income, such as choosing the right tax class, utilizing tax-free allowances and tax benefits, and making use of tax planning opportunities.
To optimize your taxable income, I recommend seeking the advice of a tax consultant. A tax advisor can analyze your individual situation and provide you with tailored tax solutions. This way, you can ensure that you make use of all tax advantages and do not miss out on any tax benefits.
I hope this information is helpful to you and I am available for any further questions you may have. Thank you for your trust and inquiry.
Best regards,
Yvonne Schreiber
