How does the combination of tax classes III and V work for married couples?
June 13, 2023 | 30,00 EUR | answered by Friedhelm Peters
Dear tax advisor,
my name is Paula Jung and I am married. My husband and I have recently been considering changing our tax classes to take advantage of tax benefits. Currently, we are both classified in tax class IV, but we have heard that the combination of tax classes III and V could be advantageous for us as a married couple.
Our situation is as follows: My husband earns significantly more than I do and is the main earner in our family. I work part-time and earn accordingly less. We have two children and both of us are employed. So far, we have both chosen tax class IV, thinking that this would be the best choice for us.
However, we now have concerns that we may be paying too much in taxes, as my husband earns significantly more than I do. Therefore, we are interested in the combination of tax classes III and V. We would like to know how this combination works, what benefits it offers, and whether it could be sensible for us as a married couple.
Can you please explain to us how the combination of tax classes III and V works for married couples? What requirements must be met to be able to use this combination? Are there any possible disadvantages that we should consider? And what steps do we need to take to change our tax classes?
Thank you in advance for your help and advice.
Sincerely,
Paula Jung
Dear Mrs. Jung,
Thank you for your inquiry regarding the change of tax classes as a married couple. It is understandable that you are thinking about possible tax advantages and want to find an optimal solution for your financial situation. I would be happy to explain to you how the combination of tax classes III and V works and whether this could be advantageous for you as a married couple.
Tax class III is intended for the partner who earns more and is therefore the main breadwinner in the family. This tax class leads to a lower tax burden, as less income tax is deducted. Tax class V, on the other hand, is intended for the partner who earns less and is therefore the secondary earner in the family. More income tax is deducted in this tax class.
By combining tax classes III and V, you as a married couple can benefit from a lower tax deduction. The main earner pays less taxes, while the secondary earner pays more taxes. This results in an overall lower tax burden for the couple. This combination can be particularly useful when there is a significant difference in the incomes of the partners.
To change tax classes, you must submit an application to the tax office. The prerequisite for the combination of tax classes III and V is that both partners are subject to unlimited income tax liability and live in Germany. In addition, both partners must be permanently separated or divorced, as the combination of tax classes III and V is intended for married couples.
It is important to note that the choice of tax classes has an impact on the monthly net salary. Therefore, you should inform yourself well before making a change and, if necessary, seek tax advice. I am happy to assist you with any further questions and support.
I hope that I was able to help you with this information. If you have any further questions, please do not hesitate to contact me.
Best regards,
Friedhelm Peters
