Tax class selection/Parental allowance
July 23, 2012 | 25,00 EUR | answered by Dr. Yanqiong Bolik
Hello, my fiancé and I will be getting married on 31.08.2012. Currently, we are both in tax class I.
My gross/net salary: 2,368 euros/1,504 euros
His gross/net salary: 2,609 euros/1,650 euros
Starting from 25.09.2012, I will go on maternity leave (estimated due date: 10.11.2012) followed by 8 weeks of maternity leave and planned parental leave of 24 months (with reduced parental benefit of about 480 euros per month plus child benefit of 183 euros).
As it is completely new territory for us, we now have the question
a) at what point to make a change
b) in which tax classes
best for the period of parental and child benefit receipt - possible under-year tax advantage without a repayment - as well as for a tax refund for the year 2012.
I would like to thank you in advance for answering my questions!
Kind regards
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax outcome.
a) With marriage, tax class IV is automatically formed for each spouse. Therefore, each spouse initially receives tax class IV, even if the spouse is not employed. To obtain the tax class combination III/V, the spouses must submit an application to the tax office. The spouse with tax class III will receive a higher net salary during the year. The spouse with tax class V will have higher income tax withheld. Additionally, the tax class combination also affects the amount of wage replacement benefits.
b) If you want to maximize your net income during the year, your future spouse should choose tax class III after marriage. This way, they will pay lower income tax during the year and receive a higher net salary. The determination of income tax after the end of the calendar year is independent of the income tax class. Tax is assessed based only on the taxable income of the taxpayer. Under-year income tax payments are advance payments of income tax. If the paid income tax is higher than the income tax determined by the tax office, the taxpayer will receive a tax refund. In the opposite case, the taxpayer must make an additional payment. Therefore, if you want to maximize your current net income, you will pay lower income tax as advance payments, then you may expect a lower refund, often even a tax payment.
I hope I could be of help.
If there are still uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
