Which tax class is the best for me as a self-employed professional?
July 20, 2024 | 40,00 EUR | answered by Yvonne Schreiber
Dear tax advisor,
my name is Jenny Zellmer and I am self-employed. I have always been classified in tax class I so far, as I had no other income. However, now I have an additional income from a part-time job alongside my self-employment. This makes me unsure whether tax class I is still the best choice for me or if it would be more beneficial to switch to another tax class.
I am worried that being in the wrong tax class could result in me paying too much tax or having to make a high repayment at the end of the year. Therefore, I would like to know from you which tax class would be most advantageous for me as a self-employed individual with additional income.
Could you please explain to me the different tax classes available and their advantages and disadvantages for me as a self-employed individual? Are there ways to minimize the tax burden, and what tax aspects should I consider in my decision? I would greatly appreciate a detailed consultation on this matter.
Thank you in advance for your assistance.
Best regards,
Jenny Zellmer
Dear Mrs. Zellmer,
thank you for your inquiry regarding the optimal tax class for your freelance work in combination with additional income from a part-time job. It is understandable that you are considering which tax class is the best choice in your situation to avoid high tax payments or additional payments.
In Germany, there are six different tax classes, with tax class I being intended for singles or single parents without children. In your case, since you have additional income from your freelance work, tax classes II (for single parents with children), III (for married couples where one partner earns significantly more than the other), or IV (for married couples where both partners have similar incomes) could also be options.
When choosing the optimal tax class for you as a freelancer with additional income, various factors should be considered. Firstly, the ratio between your freelance income and income from the part-time job plays a role. Depending on the amount of income, it may be beneficial to switch to a different tax class to optimize the tax burden.
Furthermore, possible tax benefits or deductions that you can take advantage of should also be considered in your decision. It is also important to note that the choice of tax class affects the amount of monthly net salary. In some cases, it may be advisable to choose a combination of tax classes that leads to a higher net salary.
To minimize your tax burden, tax optimization measures such as using deductible expenses or business expenses could be considered. These measures can help reduce the amount of taxes you have to pay and improve your financial situation.
I recommend that you consult with a tax advisor to receive individual advice and determine the optimal tax class for you. A professional can analyze your personal situation and help you make the right decision to take advantage of tax benefits and avoid additional payments.
I hope that this information is helpful to you and I am available to assist with any further questions.
Sincerely,
Yvonne Schreiber Tax Advisor
