flapjacks

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About flapjacks

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  1. Tax class change due to family relocation

    Any good samaritan that could share with me his knowledge or experience on the questions mentioned in my original post?   Thank you!
  2. Getting a loan and then leaving Germany

    How about applying for a student loan?  It is actually designed for the specific situation you have in mind.  You borrow first, graduate school and usually start paying the loan 1 year after you got your degree.
  3. Unable to pay Large Sum Personal Loan

    (I answer you using common sense, this is not professional advice):   Did you have to put something as collateral for the loan, like property or a financial guarantee provided by a third party?  If that was the case, it is probable that the bank would try to execute on that collateral to resolve the debt. Although normally banks are willing to renegotiate conditions in order to continue with the repayment of the loan.  If they are open to this, they will renegotiate in their favour (you will end up owing more in exchange for extra time or lower monthly installments).   If there was no collateral and you can prove that you did not incurred in fraud (you did not lie to them in the loan application or provided false documentation), then it is on them to take the loss from your inability to repay the loan.  It is called “bad debt”.   You will however not come “clean” out of this mess. Your credit score will take a massive hit and you will most likely have a lot of trouble getting financing in the future.  If you declare bankruptcy, you might also not be able to own property or other assets for a certain number of years or they could be repossesed by the parties to which you owe money.   As for your german passport, I have no idea.  But if by passport you meant that you are awaiting to be awarded naturalization, then yes, most likely you will be denied naturalization at the last minute because your financial situation has changed.   Sorry if I am the bearer of bad news and I hope you find a job soon and can manage to solve the situation.
  4. Dear TT community,   I am hoping someone with a similar past experience or expert knowledge could help me with following tax questions:   Background: my family (wife, children) will relocate to our home country (inside EEA) after the school year is over but I will remain working in Germany until the end of the year (and then join them at year's end).  At the moment, I am the sole income earner for the family.  For income tax purposes, I am registered under tax class III and I file a joint tax return in Germany every year.  In the future, my wife will start to work in the country we are moving to.  My family will deregister from our address in Germany before moving away.  The school year from children will be completed by the end of June, so there is the option to deregister and move away before they have spent over 183 days in Germany in 2021 or there is the option to delay the deregistration until some time in July, which would mean that they would reside in Germany for more than 183 days in 2021.   Question 1)  For tax purposes in Germany (I am only asking about the German side of it), when would be more practical / financially advisable for them to deregister: before the 183 days of residency are over? Or after that?    The reason I ask this, is because I do not know if there is an advantage if we were both considered tax residents in Germany for 2021;  or if it would be simpler that she is not considered a tax resident here and then next year, she would only need to file an individual tax return in the country we are moving to and I would file an individual tax return in Germany for 2021.   Question 2a)  Do I need to change my tax class for 2021 (as she will move away and work in another country) or is the tax class assigned on a yearly basis?   Question 2b)  Assuming I need to change tax classes, is it very complicated to file a German income tax return when part of the year was taxed under class III and the rest of the year was taxed under a different tax class?    Thank you for your advice!