malikos
Mar 28 2007, 12:52 pm
If i changed my Tax class from 1 to 3 (due to marriage) . How much extra cash would i get. I rougly take home net pay of 2950euros a month.
What is the difference between Tax Class 3 and Tax Class 4.
Malcolm Spudbury
Mar 28 2007, 2:02 pm
exquitius
Mar 28 2007, 3:17 pm
BUT
what happens if the chick has no work permit.
Then surely no tax allowance on her behalf?
Mariposa
Mar 28 2007, 3:33 pm
Wouldn't she get one if they get married?
woolleym
Apr 2 2007, 10:47 am
Tax class 3 is in concept something like "one person, 2 single person tax free allowances"
Tax class 5 is the opposite "one person, 0 tax free allowances"
(I'm not sure if the figures are exactly 2/0 tax free allowances, but it is along these lines).
The partner earning more takes tax class 3 and is (much) better off. The other partner takes tax class 5 and is (a bit) worst off, but overall as a couple the combined net pay is higher.
Tax Class 4, is basically the same as class 1 for singles, but indicates you are married. Both partners taking tax class 4 will not be worst off due to marriage, but there is no gain. Useful if you earn similar amounts. Also if you live apart you have to have class 4/4, as 3/5 only applies to couples who "normally" live together.
malikos
Apr 3 2007, 3:51 pm
Can you change class status from a 4 to 3.
woolleym
Apr 10 2007, 7:48 pm
You can only change tax class once a year (normally - there are as ever possibilities of exceptions, no I don't know what they are!).
I assume you can change between 4/4 & 3/5 every year if you wanted to.
My understanding is that although you might pay less tax during the year on 3/5, you will get more back on 4/4 at the end of the year (assuming you get any back at all). I shall try and find the (Finanzamt) link that led me to believe this. Also, if you end up on social security e.g. by losing your job, your benefits will be based on your net salary, which is fine if you were on 3, but not so fine if you were on 5.
irpit
Oct 27 2008, 12:09 pm
I AM GETTING MARRIED ON THE 7th november and have been working full time for the last 7 monthswith a class 1 tax card.what is the procedure for changing to a class 3 or 4, i.e.when,how and will i recieve any tax back for this last 7 months and when. I am english, my wife is german and we have 2 children together.Any advice please.
Topics merged by admin
Kätzchen
Oct 27 2008, 12:17 pm
take your Lonsteuerkarte to the Einwohnermeldeamt, ask them to change the tax class as you are married. Take marriage certificate (and translation if you weren´t married in Germany). If you are an employee you should get any tax back in your next pay, but as far as I can tell you won´t get tax back on the last 7 months just because of the marriage because you are still tax class 1 until you are married.
Guy
Oct 27 2008, 12:25 pm
QUOTE (Kätzchen @ Oct 27 2008, 12:17 pm)

as far as I can tell you won´t get tax back on the last 7 months just because of the marriage because you are still tax class 1 until you are married.
No, once you get married (registry office, not church), your new tax class counts for the whole year. You don't get that money back (if any) automatically, though, you have to file a claim at the end of the year.
kato
Oct 27 2008, 12:32 pm
You can have your tax class changed at your local community registry (ie ask your Bürgeramt/Einwohnermeldeamt for the forms). Do the application for the new tax classes immediately once you have your marriage certificate, before November 30th! You'll also need the Lohnsteuerkarten of both yourself and your wife, so get them from your employers too beforehand.
When you file your tax return, tax for the entire year will be calculated based on the tax class you have on Dec 31st (switch last possible November 30th). As for the when you get any money back, about 3-4 months after you file your tax return usually.
Krieg
Oct 27 2008, 2:40 pm
QUOTE (Kätzchen @ Oct 27 2008, 12:17 pm)

as far as I can tell you won´t get tax back on the last 7 months just because of the marriage because you are still tax class 1 until you are married.
Taxes are for the whole fiscal year, he will be considered as married for the whole 2008. He will get a bunch of taxes back once he files the taxes.
In Germany you have to get married at the end of the year and get divorced at the beginning of the year. I made it wrong both and it was expensive.
mefoster
Oct 27 2008, 3:02 pm
I just got married (in the UK) a couple of weeks ago. I'm shortly going to return to Germany (where I'm currently working), while my husband will stay in the UK (where he's working). Does anyone know whether being married to someone who doesn't live in Germany has any effect on my tax code or anything else? (NB: we're both Canadians, if it's relevant, and I'm planning to move to the UK next year sometime)
I did email someone in the personnel office at my work about this last week and she said, just send me a copy of the marriage certificate and I'll make sure it gets to where it needs to be. Is that likely to be sufficient or am I going to have to do any additional bureaucracy myself too?
kato
Oct 28 2008, 12:57 pm
Zero effect. Your husband has to live in Germany as well for you to get a class III/IV tax class.
pacificblue
Oct 28 2008, 2:35 pm
I was married in 2006 and my wife and I changed from tax class 1 to class 3 and 5. My income was about 58% higher than my wife's so we understood this was a more effective way to balance our tax liabilities and using the calculators we estimated a small saving in tax payable. My employer adjusted all my monthly tax amounts for the full year based on class 3 which is a lower tax rate, so I received a credit from my employer and my wife received a smaller pay because she moved to a higher tax class. Unfortunately, her company changed owners in July 06 and the new employer only recalculated the PAYG amounts from July - Dec which meant for Jan - Jun she underpaid taxes for these 6 months.
My 2006 tax entry is still not submitted while I resolve some issues. What I have been told by the tax advisor is that I must pay the difference between the amount of tax payble assuming we chose tax class 4 (married couple with similar incomes) and the chosen option of class 3 and 5. The logic is that when a couple selects tax class 3 and 5 there is a benefit in monthly net income but this needs to be repaid at the end of the year in a lump sum.
I find this hard to accept because if as a couple we can pay less monthly payroll tax by choosing classes 3/5 I don't see why at the end of the year the tax I 'should' have paid is calculated using class 4 and I need to make up the difference in a lump payment. Sure, I benefit a little each month based on my choice of tax class but is it correct that the end of year calculation this benefit must be offset by a repayment?
Does anyone know if this approach is correct or has someone had a similar experience and can provide any advice?
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