How does a part-time job affect my tax bracket?
March 17, 2022 | 40,00 EUR | answered by Dirk Voigt
Dear tax advisor,
My name is Lilli Wolf and I am already working full-time in a permanent employment position. I now have the opportunity to take on a part-time job to increase my income. However, I am unsure about how this part-time job will affect my tax class.
Currently, I am classified in tax class I as I am single and have no children. My current gross salary is below the basic tax-free allowance, so I do not have to pay taxes. Now I am wondering if my tax class will change if I take on a part-time job and my total income increases.
I am concerned that the additional earnings may place me in a higher tax class and result in me having to pay more taxes. At the same time, I am wondering if it is possible to tax both incomes separately or if my total income will be used to determine my tax class.
Can you explain to me how a part-time job will affect my tax class and if there are ways to optimize my tax burden? For example, are there any allowances or deductible expenses that can reduce my tax liability?
Thank you in advance for your help.
Sincerely,
Lilli Wolf
Dear Mrs. Wolf,
Thank you for your inquiry regarding the impact of a part-time job on your tax class. I would be happy to explain to you how an additional income can affect your tax class and what options are available to optimize your tax burden.
In general, the classification into a tax class is based on your main occupation, i.e., the job in which you earn your main income. Since you are currently classified in tax class I, this means that you are single and childless, and your income is below the basic tax allowance. In this tax class, your income is taxed at the lowest tax rate.
If you now take on a part-time job and your total income increases, it is possible that you will be classified into a higher tax class. This depends on the amount of the additional income. Usually, the total income from the main and part-time job is used to calculate the tax class.
However, there are ways to optimize your tax burden. For example, you can claim tax allowances to reduce your tax burden. These include the basic tax allowance, work-related expenses, or special expenses. Work-related expenses are costs related to your professional activities, such as travel expenses, work materials, or training costs. You can declare these in your tax return and deduct them from your taxable income.
It is important to keep a close eye on your income situation and possible tax allowances to not miss out on any tax benefits. I recommend that you consult with a tax advisor to discuss your individual situation and develop an optimal tax strategy together.
I hope this information was helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Dirk Voigt
