Which tax bracket is the best for civil servants?
November 18, 2023 | 40,00 EUR | answered by Babette Schneider
Dear tax advisor,
My name is Dennis Mattes and I am a civil servant. I am married and have two children. Currently, I am classified in tax class III as my wife is not employed. However, I have recently heard that there are special regulations for civil servants regarding tax classes and that it may be advantageous to switch to a different tax class.
My concern is that I may be paying too much in taxes and this could financially burden my family. I want to ensure that we as a family are maximizing our tax situation and paying as little tax as possible.
Could you please explain to me which tax class is most suitable for civil servants and what advantages and disadvantages the different tax classes could have in my case? Are there specific regulations for civil servants that I should be aware of? What options are there to optimize our tax burden?
Thank you in advance for your assistance.
Sincerely,
Dennis Mattes
Dear Mr. Mattes,
Thank you for your inquiry regarding the tax classes for civil servants. As a tax advisor with many years of experience in the field of tax classes, I can gladly assist you and show you the different options for your tax situation.
First of all, it is important to know that civil servants do have special regulations regarding tax classes. Civil servants can choose between tax classes I, II, and IV. Tax class III is not available to civil servants, as they are usually already tax favored due to their high incomes.
In your case, where your wife is not employed and you have two children, it may indeed be beneficial to consider a switch to tax class IV. In tax class IV, you would automatically be classified in the more favorable tax class V if your wife is not employed. This could result in a lower overall tax burden for your family.
Another advantage of tax class IV for civil servants is that the tax burden in this class is generally slightly lower than in classes I and II. Additionally, tax-free amounts that you are entitled to as a civil servant are automatically taken into account in tax class IV. This may result in you having to pay less taxes overall.
However, there are also some disadvantages to consider with tax class IV. For example, it is possible that due to the lower tax burden in this class, a repayment may be due at the end of the year if tax-free amounts were not correctly taken into account. Therefore, it is important to regularly review your tax situation and make adjustments if necessary.
In addition to choosing the right tax class, as a civil servant you can also benefit from certain tax advantages, such as the possibility to deduct work-related expenses or special expenses for tax purposes. It is worth informing yourself about these options and taking advantage of them if applicable, to optimize your tax burden.
Overall, a switch to tax class IV may be advantageous for you as a civil servant with a non-employed spouse and children, as it could lead to a lower overall tax burden. However, it is important to carefully examine your individual situation and possibly also speak with a local tax advisor to find the best possible solution for you.
I hope this information was helpful to you and I am happy to assist you with any further questions.
Best regards,
Babette Schneider
