How does a mini job affect my tax class?
October 9, 2023 | 40,00 EUR | answered by Dirk Voigt
Dear tax advisor,
My name is Sebastian Huber and I am currently working full-time as an employee in a company. Recently, however, I have been given the opportunity to take on a mini job to supplement my income. Now I am wondering how this mini job could affect my tax class.
My current situation is as follows: I am classified in tax class 1 and earn a fixed salary monthly. With the mini job, I would earn an additional minor income that does not exceed the limit of 450 euros per month.
My concerns are that the mini job could change my tax class and potentially result in higher taxes or social security contributions for me. I would like to know what impact a mini job could have on my tax class and if there are possible solutions to avoid tax disadvantages.
Can you explain to me how a mini job affects my tax class and what consequences it could have on my tax burden? Are there ways to avoid tax disadvantages or take advantage of tax benefits? I look forward to your professional advice and thank you in advance for your help.
Sincerely,
Sebastian Huber
Dear Mr. Huber,
Thank you for your inquiry regarding your mini job and its effects on your tax class. As a tax advisor, I can explain to you how a mini job can affect your tax class and what consequences this could have on your tax burden.
First of all, it is important to know that the classification into a specific tax class primarily depends on your main employment. Since you are currently classified in tax class 1, this means that you are single and without children. Tax class 1 is the standard tax class for employees who are not married or widowed and do not have children.
If you now take on a mini job, this usually has no direct impact on your tax class. This means that you will continue to remain in tax class 1 and your income from your main employment will be taxed in this tax class. The additional income from the mini job will be treated separately and subject to a flat tax rate of 2 percent for the pension insurance and 20 percent for income tax. As long as your mini job does not exceed 450 euros per month, you will continue to be in tax class 1.
In terms of your tax burden, however, you can expect that the additional income from the mini job will increase your overall tax burden. Since this income is subject to a flat tax, it may result in you having to pay slightly more taxes overall. However, the amount is usually not so high, as it is a minor income.
To avoid tax disadvantages or even take advantage of tax benefits, I recommend regularly reviewing your tax situation and making adjustments if necessary. For example, it may be beneficial to apply for tax allowances at the tax office to reduce your tax burden. Good tax planning can also help to take advantage of potential tax benefits and optimize your tax burden.
I hope that this information has been helpful to you, and I am available for any further questions you may have. Thank you for your trust and inquiry.
Best regards,
Dirk Voigt
