How can I find out if I am in the wrong tax class and how can I change it?
January 8, 2024 | 40,00 EUR | answered by Friedhelm Peters
Dear tax advisor,
My name is Paula Witzelmann and I have been working full-time at a company for many years. Lately, I have noticed that my tax deductions are very high and at the end of the month I have less net income than expected. I am wondering if I might be in the wrong tax class and if it is possible to change it.
I am married, my spouse is also employed but earns less than me. We do not have children and we live in a rented apartment. I am not sure if I am in the right tax class and if it would be financially beneficial for us if I were to switch to a different tax class.
My concern is that I am paying unnecessary taxes and as a result, we have less money left for our monthly expenses. I would like to find out if it is possible to review my tax class and potentially change it in order to have more net income.
Could you please explain to me how I can find out if I am in the wrong tax class and what I need to do to change it? Are there specific requirements or deadlines that I need to be aware of? And what are the implications of changing tax classes on my monthly income?
Thank you in advance for your help.
Sincerely,
Paula Witzelmann
Dear Mrs. Witzelmann,
Thank you for your inquiry regarding your tax class. As tax advisor Friedhelm Peters, I would like to help you and explain how you can determine if you have the wrong tax class and what you need to do to potentially change it.
In Germany, there are six different tax classes, which result in different tax deductions depending on marital status and income situation. As a married person, you have the option to choose between different combinations of tax classes. In your case, since both you and your spouse are employed and have no children, you were likely classified into tax class IV, as this is the standard tax class for couples without children.
If you feel that you are paying too much in taxes and have less net income at the end of the month than expected, it may be advisable to review your tax class and potentially make a change. In your case, it could be advantageous to switch to tax class III, as your spouse earns less than you. Tax class III leads to lower tax deductions and therefore a higher net income.
To review and potentially change your tax class, you need to submit an application to the tax office. You must indicate which tax class you would like to switch to and provide reasons for the change. For a switch to tax class III, you also need to apply for joint assessment with your spouse.
There are no fixed deadlines for changing tax classes, but it is advisable to submit the application early in the year so that the change takes effect in time for the next tax year. Changing tax classes can have a positive impact on your monthly income, as you will pay less in taxes and therefore have more net income.
I hope this information has been helpful to you. If you have any further questions or need assistance with the application for changing tax classes, I am at your disposal.
Best regards,
Friedhelm Peters, Tax Advisor
