Ask a tax advisor on the topic of Tax classes

Principle: Tax classes + severance payment, if partner is self-employed.

August 22, 2011 | 30,00 EUR | answered by Michael Herrmann

Hello,

I am employed part-time (approx. 24,000 gross/year) and my husband, as a freelancer, earns a profit of around 112,800 euros before taxes. I am in tax class 5, he is in tax class 3.

Questions:
Does this combination of tax classes make sense in our case, despite the salary difference, since my husband is a freelancer?

Furthermore, I expect to receive a severance payment of approximately 40,000 euros in January next year due to a termination agreement. Is it worth changing tax classes (me to 3) to receive a higher net severance payment, or would we end up with a larger tax bill at the end of the year than with our original tax classes?

And should I ensure that the 1/5 rule is NOT applied when receiving the severance payment, due to my husband's high income?

Michael Herrmann