How does marriage affect my tax class?
February 12, 2024 | 40,00 EUR | answered by Dirk Voigt
Dear tax advisor,
My name is Marco Vollmann and I have been classified in tax class I for several years. My fiancée and I are planning to get married in the near future and I am wondering how this will affect my tax class.
Currently, I earn an average salary as a single person and pay taxes in tax class I accordingly. My fiancée is also employed and is currently in tax class II, as she has a child and is a single parent.
We are wondering if it would be beneficial to file our taxes jointly after getting married and what tax class we would likely receive. We are considering whether our overall tax burden will change as a result of marriage and if there may be any tax advantages that we can take advantage of.
Could you please explain to us how marriage will affect our tax class and what impact this could have on our tax burden? Are there any specific factors that we should consider when deciding on the choice of tax class?
Thank you in advance for your help and support.
Sincerely,
Marco Vollmann
Dear Marco Vollmann,
thank you for your inquiry regarding the effects of marriage on your tax class. I would be happy to explain how marriage will affect your taxes and what factors you should consider when choosing a tax class.
After marriage, you and your spouse have the option to file your taxes jointly. In this case, your incomes will be combined and taxed according to tax classes III/V or IV/IV. The choice of tax class depends on various factors, such as the amount of income, potential child tax credits, or other tax benefits.
If you both work and earn similar incomes, it may be beneficial to choose tax classes III/V, as the partner who earns more will receive tax class III with the lower tax rate. The other partner will be placed in tax class V. This combination may result in a lower tax burden compared to tax class IV/IV, where both partners have the same tax rate.
If your fiancée is a single parent and currently in tax class II, it may also be advantageous to choose the III/V combination, as you can benefit from the tax advantages of tax class III.
It is important to note that the choice of tax class can be changed annually and may vary depending on your life situation. Therefore, it may be beneficial to regularly consult with a tax advisor about the optimal tax class combination.
Overall, marriage can have tax benefits, as married couples are generally favored in terms of taxes. It is worth exploring the different options and choosing the tax class that is most advantageous for you.
I hope this information has been helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Dirk Voigt, Tax Advisor
