Which tax class is most advantageous for me as a student?
January 14, 2022 | 40,00 EUR | answered by Yvonne Schreiber
Dear tax advisor,
my name is Norbert Melzer and I am currently a student in my second semester. I have a part-time job to finance my studies. I have been classified in tax class I so far, as I am single and have no children. Now I am wondering if it would be more advantageous for me as a student to choose a different tax class.
My monthly income from my part-time job is currently below the tax-free basic allowance, so I have not had to pay any taxes so far. However, I am wondering if I might have less deductions or could take advantage of other benefits by choosing a different tax class.
I am concerned that I may be giving away money by not choosing the optimal tax class for me. Therefore, I would like to know from you which tax class would be most advantageous in my situation. Are there any specific regulations or benefits for students that I may not have considered so far?
I look forward to your expert advice and thank you in advance for your help.
Sincerely,
Norbert Melzer
Dear Mr. Melzer,
Thank you for your inquiry regarding the optimal tax class as a student with a part-time job. It is good that you are thinking about this, as the right tax class can indeed have an impact on your financial situation.
As a student with a monthly income below the tax-free basic allowance of currently 9,744 euros per year (as of 2021), you are generally exempt from income tax. This means that you have not had to pay any taxes so far. In tax class I as a single employee without children, no special benefits or tax relief are granted as it is the standard class.
However, in your situation, it may be worth considering whether a different tax class would be more advantageous for you. One possible option could be tax class VI, which can be used for part-time jobs and second jobs. In this tax class, higher taxes are deducted than in class I, but this can be offset at the end of the year through the tax return if you do not have any other income.
Another option could be tax class IV with factor. Here, the individual tax allowance is taken into account, which can result in lower deductions. This is especially beneficial if you, as a student, have other income or are jointly assessed with your partner.
However, it is important to note that the tax class not only affects the monthly deductions, but also the amount of a possible tax refund or payment due in the annual tax return. Therefore, I recommend contacting a specialized tax advisor to analyze your individual situation and determine the best tax class for you.
I hope this information is helpful to you and I am available for further questions.
Sincerely,
Yvonne Schreiber, Tax Advisor
