What requirements do I have to meet in order to switch to tax class IV?
May 26, 2024 | 30,00 EUR | answered by Friedhelm Peters
Dear tax advisor,
My name is Marie Jensen and I am married. Currently, I am classified in tax class III, as my spouse is in tax class V. We both have full-time jobs and a child together. Now we are considering whether it would be beneficial for us to switch to tax class IV.
Our current situation is as follows: My husband earns slightly less than I do, but overall we have a relatively equal income. Since we both work full-time and our child is in daycare, we are wondering if switching to tax class IV would be advantageous for us from a tax perspective.
I am concerned about whether we meet the requirements to be able to switch to tax class IV. What specific conditions do we need to meet for a switch to be possible? Are there certain income limits that we need to consider? What would be the implications of the switch on our overall family income?
I would greatly appreciate it if you could assist me in this decision and provide me with possible solutions. Thank you in advance for your support.
Sincerely,
Marie Jensen
Dear Mrs. Jensen,
Thank you for your inquiry regarding a possible change of tax class from III to IV. It is understandable that you are considering which tax class is most advantageous for you and your spouse, especially since you both work full-time and have a child.
First of all, I would like to inform you that it is generally possible to switch from tax class III to tax class IV if both spouses have similar incomes. In your case, where your spouse earns slightly less than you, switching to tax class IV could indeed be beneficial.
In order to switch to tax class IV, certain requirements must be met. In your case, it is crucial that the income situation between you and your spouse is balanced. There are no fixed income limits that you must adhere to, but it is expected that the incomes are not too far apart.
A switch to tax class IV could potentially have positive effects on your overall family income. Since tax class IV combines the incomes of the spouses for tax purposes, you may end up paying less taxes overall than in tax classes III and V. Additionally, the amount of parental leave benefits could also be positively affected, as it often depends on the combined family income.
However, it is important to note that a change of tax class may also have implications on other tax aspects, such as the amount of solidarity surcharge or social security contributions.
To make an informed decision, I recommend contacting a tax advisor who can analyze your individual situation and provide you with specific recommendations. I am also available for a personal consultation.
I hope that this information has been helpful to you and I am happy to assist you with any further questions.
Best regards,
Friedhelm Peters
