What happens if I declare the wrong tax class?
May 12, 2024 | 40,00 EUR | answered by Babette Schneider
Dear tax consultant,
My name is Alexander Zellmer and I am currently somewhat concerned about my tax class. I recently noticed that I may have provided the wrong tax class and now wonder what impact this could have on my tax situation.
Some background information: I have been in a stable employment for several years and have always been in tax class I. However, I recently got married and now wonder if it would be beneficial to switch to tax class IV in order to take advantage of the tax benefits for married couples.
My concern is that by providing the wrong tax class, I may have paid too much or too little taxes and now have to expect additional payments or refunds from the tax office. I would like to avoid any financial disadvantages resulting from my mistake.
Can you please explain to me what happens if I provide the wrong tax class? Are there ways to correct this mistake and change the tax class retroactively? What steps do I need to take for this and what consequences could I face?
Thank you in advance for your support and helpful information.
Sincerely,
Alexander Zellmer
Dear Mr. Zellmer,
Thank you for your inquiry regarding your tax class and possible implications on your tax situation. It is understandable that you are concerned and want to ensure that you do not suffer any financial disadvantages due to the incorrect declaration of your tax class.
First and foremost, it is important to know that the choice of tax class plays a significant role in the calculation of your income tax. Tax class I is intended for single individuals or married individuals whose spouse is not employed. Tax class IV, on the other hand, is the common tax class for married couples where both partners are employed.
If you have recently married, it may indeed be beneficial to switch to tax class IV to take advantage of the tax benefits for married couples. In tax class IV, the incomes of both spouses are jointly assessed, which often leads to a lower tax burden compared to tax class I.
If you have declared the wrong tax class, this could result in either overpaying taxes (which could lead to a refund from the tax office) or underpaying taxes (which could lead to a tax bill). It is important to correct this mistake to avoid financial consequences.
Fortunately, in most cases, it is possible to retroactively change your tax class. To do so, you will need to submit an application for a tax class change to the tax office. This application can usually be submitted until November 30th of the current tax year. If the application is submitted after this date, the change will only take effect in the following year.
It is important to have all relevant information and documents ready for the application to ensure a smooth transition. In some cases, it may also be advisable to seek advice from a tax advisor to ensure that the change is carried out correctly.
Overall, it is possible to correct and retroactively change an error in declaring your tax class. It is important to do so promptly to avoid financial disadvantages. If you have any further questions or need assistance, I am happy to help.
Best regards,
Babette Schneider
