Which tax class is the best for me as a retired person with additional income?
January 21, 2023 | 40,00 EUR | answered by Friedhelm Peters
Dear tax advisor,
my name is Daniel Eckstein and I am a retiree. I retired a few years ago and have been receiving my statutory pension since then. In addition to my pension, I also have additional income from a small self-employment activity that I still engage in. So far, I have been classified in tax class III, as my spouse was the main earner and I thus benefited from tax advantages.
Now I am faced with the question of whether tax class III is still the best choice for me, or whether it would be more sensible to switch to a different tax class taking into account my pension and additional income. My goal is to make the best use of tax advantages and optimize my tax burden. I am concerned that I may be paying too much tax or not fully utilizing possible tax benefits.
Could you please help me find the appropriate tax class for my situation as a retiree with additional income? Which tax class would be most advantageous for me to minimize my tax burden and optimize my income as effectively as possible? Are there any specific regulations or exceptions that I should be aware of? I look forward to your expertise and assistance in choosing the optimal tax class.
Thank you in advance for your help.
Best regards,
Daniel Eckstein
Dear Mr. Eckstein,
Thank you for your inquiry regarding the optimal tax class for your situation as a retiree with additional income. As an expert in tax matters, I am happy to assist you and provide you with some recommendations.
First and foremost, it is important to know that tax class III is primarily intended for married employees with a significantly higher income, where one spouse is considered the main earner. In your case, as a retiree with additional income from self-employment, it may be beneficial to reconsider your tax class in order to optimize your tax burden.
One possible alternative to tax class III could be tax class IV. This tax class is suitable for employees who earn roughly the same amount. Since you have additional income from self-employment in addition to your pension, tax class IV may potentially be more advantageous in your case. By combining income from pension and self-employment, you may end up paying less tax overall than in tax class III.
However, it is important to consider that the choice of the optimal tax class depends on various factors, such as the level of income, possible deductions, tax-free allowances, or other tax regulations. Therefore, I recommend seeking individual advice from a tax advisor who can analyze your personal situation in detail.
Additionally, you should check if there are any special regulations or exemptions for self-employed individuals that you can take advantage of to minimize your tax burden. A tax advisor can provide targeted advice in this regard and highlight potential tax benefits for you.
Overall, it is advisable to regularly review your tax situation and make adjustments as necessary to optimize your income and fully utilize tax benefits.
I hope my response has been helpful to you and I am available to answer any further questions you may have.
Sincerely,
Friedhelm Peters
