What impact does a mini job have on my tax class?
April 24, 2023 | 30,00 EUR | answered by Dirk Voigt
Dear tax advisor,
My name is Georg Busch and I currently work full-time in a company. However, I recently received an offer for a mini job and am considering whether to accept it. I am unsure about the potential impact of a mini job on my tax class and therefore on my tax burden.
Currently, I am classified in tax class 1 and earn a monthly gross salary of 3,500 euros with my full-time job. The mini job would provide me with an additional monthly income of 450 euros. I have heard that a mini job could change my tax class and potentially result in me paying more taxes.
My concern is that I may end up with less net income as a result of the mini job, or that my overall tax situation may become complicated. I would like to know the specific effects a mini job could have on my tax class and my monthly net income, and if there are any possible tax optimization opportunities.
Could you please explain to me how a mini job affects my tax class and whether it is advisable to accept it? Are there any other alternatives to increase my income without worsening my tax situation?
Thank you in advance for your help and advice.
Sincerely,
Georg Busch
Dear Mr. Busch,
Thank you for your question regarding the impact of a mini job on your tax class and monthly net income. As a tax advisor, I would like to provide you with all relevant information to assist you in your decision.
First and foremost, it is important to understand that a mini job generally has no impact on your tax class. Your tax class is usually determined by your main employment, in your case, tax class 1. A mini job is treated separately and is subject to different tax regulations.
However, in terms of your monthly net income, it is important to note that earnings from a mini job are tax and social security free, as long as they do not exceed 450 euros per month. This means that you will receive the 450 euros from the mini job gross for net, without deductions for taxes and social security contributions. Therefore, your monthly net income would increase by the 450 euros from the mini job.
It is important to emphasize that a mini job is often a good way to increase your income without facing high tax burdens. However, you should ensure that you do not exceed the 450 euro per month limit, as exceeding this amount would make the mini job no longer tax and social security free.
If you are looking for other ways to increase your income without negative effects on your tax situation, you may also consider negotiating a salary increase in your main employment or looking for other earning opportunities such as overtime or side jobs within your main employer.
In summary, a mini job is generally a good way to increase your income without facing tax burdens. As long as you adhere to the 450 euro per month limit, there should be no negative impact on your tax situation.
I hope that this information has been helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Dirk Voigt, Tax Advisor
