Which tax bracket is most advantageous for me as a single parent?
May 25, 2022 | 40,00 EUR | answered by Dirk Voigt
Dear tax consultant,
My name is Leon Rademacher and I am a single father of two children. My ex-wife moved out a year ago and since then I have been taking care of the household and raising the children on my own. Previously, I was classified in tax class III, as we were jointly assessed during our marriage. Now I am faced with the question of which tax class would be most advantageous for me as a single parent.
Currently, I earn an average salary as an employee in a medium-sized company. I would like to find out if it would be financially beneficial for me to switch to tax class II and thus be able to benefit from the single parent relief amount. I am concerned that by choosing the wrong tax class, I might have to pay unnecessarily high taxes and could be financially burdened as a result.
Can you please explain to me which tax class would be most advantageous in my situation? What are the advantages and disadvantages of switching to tax class II? Are there possibly other tax measures that I, as a single parent, could consider to optimize my tax burden?
Thank you in advance for your help and support.
Sincerely,
Leon Rademacher
Dear Mr. Rademacher,
Thank you for your inquiry regarding your tax situation as a single father of two children. As a tax advisor, I would like to help you determine the most advantageous tax class for you and show you further tax measures that you, as a single parent, can consider.
In your situation as a single father, you generally have the option to switch to tax class II. This tax class is specifically designed for single parents and offers some tax benefits. By switching to tax class II, you can, among other things, claim the relief amount for single parents amounting to 1,908 euros per year. This amount is deducted directly from your taxable income, resulting in tax savings.
Another advantage of tax class II is that your taxable income is lower, as a single parent, you have a higher basic tax allowance. This can result in you having to pay less tax overall than in tax class III.
However, there are also some disadvantages to consider when switching to tax class II. Firstly, your net salary may decrease as your employer will have to withhold more income tax. Secondly, you may have to make a tax payment at the end of the year if your tax prepayments were not sufficient.
In addition to switching to tax class II, there are other tax measures that you, as a single parent, can consider to optimize your tax burden. These include applying for child allowances, considering childcare costs, or taking advantage of other tax benefits for single parents.
I recommend that you consult with a tax advisor to analyze your individual tax situation and determine the optimal tax measures for you. I am also available for further questions in my online consultation hours.
I hope that my explanations are helpful to you and wish you all the best for your tax planning as a single father.
Sincerely,
Dirk Voigt
