Which tax class is most beneficial for me as a student worker?
June 12, 2022 | 35,00 EUR | answered by Dirk Voigt
Dear tax advisor,
my name is Ulrike Becker and I am a student in the final semester of my studies. In addition to my studies, I work in a mini job and earn about 450 euros per month. So far, I have been classified in tax class I and have accordingly paid taxes. Now I am wondering if it would be beneficial for me as a student worker to switch to a different tax class in order to save taxes and have more net income.
Currently, I earn 450 euros per month and therefore fall below the tax exemption threshold of 450 euros. I am single, have no children, and no other income besides my mini job. My concern is that I may be paying too many taxes unnecessarily, leaving me with less money to cover my living expenses.
I am wondering if it would be beneficial for me as a student worker to switch to a different tax class in order to benefit from lower tax rates and have more net income. Which tax class would be most suitable in my situation and how can I apply for a change? Are there any other tax options available to reduce my tax burden as a student worker?
Thank you in advance for your help and advice.
Sincerely,
Ulrike Becker
Dear Mrs. Becker,
Thank you for your question regarding tax classes as a student worker. It is understandable that you are wondering whether it would be beneficial for you to switch to a different tax class in order to save taxes and have more net income. Let me first explain to you how tax classes work and what impact they can have on your tax burden.
In Germany, there are a total of six different tax classes, with tax class I being the standard class for singles and individuals. This class applies the highest tax rates. As a student with a mini job and a monthly income of 450 euros, you are currently in tax class I.
However, since you are below the tax-free allowance of 450 euros, you are actually exempt from tax and should not have to pay any taxes. It is possible that you have been deducting taxes incorrectly up to now. In this case, it would be advisable to submit a tax return and request a refund.
If you still wish to switch to another tax class to obtain more favorable tax rates, you could switch to tax class VI. This tax class is usually used for second and side jobs and offers lower tax rates than tax class I. However, you would have to expect higher deductions in this tax class, as the employer cannot consider any tax-free allowance.
There are other tax options available to reduce your tax burden as a student worker. For example, you could claim deductible expenses, such as commuting costs to work or work-related materials. These can reduce your tax burden and lead to a higher refund.
I recommend contacting a tax advisor to discuss your individual situation and determine the best tax options for you. A tax advisor can also assist you with any potential change of tax class or with the preparation of your tax return.
I hope that this information has been helpful to you. If you have any further questions, I am happy to assist.
Sincerely,
Dirk Voigt
