Switching tax classes to receive more Elterngeld

7 posts in this topic

Hello All,

 

Question regarding Tax class in Pregnancy

 

- We as a couple have tax class 3 and 5( earning less and would be mother)

 

I read on internet that people change their tax class in early pregnancy to maximise the elterngeld. Is it right??

So i understood following:-

- I tried calculating using elterngeld rechner. For eg if i change to 3 i will get 300- 400 euro netto now and

then x amount more in my elterngeld.But then obviously my husband will pay more taxes.

 

So my question here is :-

- Elterngeld is calculated from your netto??

-Will those extra taxes paid my husband will get us refund later from finanzamt or not?

 

Thanks in Advance!!

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I read on internet that people change their tax class in early pregnancy to maximise the elterngeld. Is it right??

 

Yes, but you have nearly no chance of getting that change through in time.

 

Since 1. January 2013, you have to apply for the tax class change at least 7 months before the start of your Mutterschutz. Since the apoplication is only valid from the next month, this then means that you need to have 6 months in the new tax class before you enter Mutterschutz. Mutterschutz starts 6 weeks before your calculated birth date.

 

So you would need to know 8.5 months (= 7 months + 6 weeks) before the birth that you are pregnant in order to fulfill these deadlines.

 

 

- Elterngeld is calculated from your netto??

 

Yes.

 

 



  • net less than 300€ --> Elterngeld 300€
  • 300€ < net < 340€ --> Elterngeld is your net salary, i.e. 100% of your net
  • 340€ < net < 1,000€ --> Eltergeld between 100% and 67% of your net, on a sliding scale
  • 1,000€ < net < 1,240€ --> Eltergeld between 67% and 65% of your net, on a sliding scale
  • 1,240€ < net < 2,769.23€ --> 65% of your net
  • net > 2,769.23€ --> Elterngeld = 1,800€

 

 

 

-Will those extra taxes paid my husband will get us refund later from finanzamt or not?

 

It doesn't matter whether you have tax class 5 and your husband tax class 3, or the other way around: what you pay during the year is just a pre-payment. The final tax burden will only be calculated in the tax return that you will have to do before 31. May 2015 for the calendar year 2014.

Instructions in the yellow section of the TT Elster wiki.

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Thanks Panda Munich for a quick reply!! You are just awesome!!

 

Although i am still eligible for change but i think it does not help any way. Because my husband will be paying more taxes, so we will come to more or less same.

 

But just wondering, how they calculate or consider my salary in elternzeit.Since i will be getting 65 % of my salary. Will my salary slip reflect all other contributions as well like pension, income tax etc? Who pays for those contributions??

 

I know that final tax will be calculated based on our both earning and total tax paid.That means they consider my 65% salary (as normal salary) and my husband 100% salary and calculate taxes accordingly. Isnt it??

 

Thanks Again!!

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Because my husband will be paying more taxes, so we will come to more or less same.

 

No, you didn't understand.

 

Let's do an example.

 

yearly gross salary husband: 40,000€ (taxable income: 33,176€)

yearly gross salary wife: 30,000€ (taxable income: 24,623€)

--> total family taxable income: 33,176€ + 24,623€ = 57,799€

 

Before the tax class change:

amounts calculated with the Parmentier wage tax calculator

 

tax husband, tax class 3: 3,671.40€

tax wife, tax class 5: 7,551.69€

--> total tax pre-paid: 3,671.40€ + 7,551.69€ = 11,223.09€

 

--> tax calculated in tax return, just enter the total family taxable income 57799 into the Parmentier income tax calculator and look at the column "couples": 11,001.54€

 

Tax refund = tax pre-paid - real tax due = 11,223.09€ - 11,001.54€ = 221.55€

 

**************************************

 

After the tax class change:

amounts calculated with the Parmentier wage tax calculator

 

tax husband, tax class 5: 11,325.42€

tax wife, tax class 3: 1,360€

--> total tax pre-paid: 11.325,42€ + 1,360€ = 12,685.42€

 

--> tax calculated in tax return, just enter the total family taxable income 57799 into the Parmentier income tax calculator and look at the column "couples": 11,001.54€

 

Tax refund = tax pre-paid - real tax due = 12,685.42€ - 11,001.54€ = 1,683.88€

 

 

But just wondering, how they calculate or consider my salary in elternzeit.Since i will be getting 65 % of my salary. Will my salary slip reflect all other contributions as well like pension, income tax etc? Who pays for those contributions??

 

During your Elternzeit, the state pays for your public pension, unemployment and public health insurance.

 

You won't get a salary slip, but simply 65% of your former net in your bank account (if you are in the 65% bracket).

 

 

I know that final tax will be calculated based on our both earning and total tax paid.That means they consider my 65% salary (as normal salary) and my husband 100% salary and calculate taxes accordingly. Isnt it??

 

Elterngeld is not taxed itself, but it does raise the tax rate that your husband has to pay on his salary, this is called progression (= Progressionsvorbehalt)

 

Example:

 

yearly gross salary husband: 40,000

your yearly Elterngeld: 12*1,500€ = 18,000€

 

--> enter into this official progression calculator:

 

mark: Splittingtarif

Zu versteuerndes Einkommen in Euro: 40000

Dem Progressionsvorbehalt unterliegende Ersatzleistungen und Einkünfte in Euro: 18000

 

click on "Einkommensteuer berechnen"

 

--> income tax 7,234€

+ 5.5% of income tax for solidarity tax: 0.055*7234 = 397,87€

_______________________________

--> total tax = 7,631.87€

 

If you husband changes into tax class III again at the start of your Elterngeld, then he prepaid for that year 3,671.40€ (see above) in tax

--> he has to pay additional tax after the tax return of: 7,631.87 - 3,671.40€ = 3,960.47€

 

So even if they officially say the Elterngeld doesn't get taxed, in the end you do pay extra tax because of it.

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I know this is an old thread, but is still advantageous to switch tax classes ahead of time if one is trying to get pregnant? (In particular, if the parent who earns less is the one who is going to be taking Elternzeit.) If so, does one have to give a reason, or can you just request a change?

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Yes, it's advantageous to change it 12 months before because the Elterngeld is calculated according to the last 12 months of the NETTO (what you receive after taxes) income.

 

You don't need to give them any reason and as far as I know you can change the Steuerklasse once every year.

 

To change your German Steuerklasse, you just have to fill out an application form called "Antrag auf Lohnsteuerklassenwechsel". It would be the easiest way to just drop by in person at your local tax office (Finanzamt) and say that you want to change your Steuerklasse.

 

Cheers,

SNooPI

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8 hours ago, captious said:

I know this is an old thread, but is still advantageous to switch tax classes ahead of time if one is trying to get pregnant? (In particular, if the parent who earns less is the one who is going to be taking Elternzeit.) If so, does one have to give a reason, or can you just request a change?

We did this with no problem. You request a change at your Finanzamt, and the Finanzamt will inform both of your companies. After you receive Elterngeld, change back your tax classes the same way as before. 

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