How to determine your tax class

94 posts in this topic

do i have to apply at the beggining of my work or i choose it at the end of the year?

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At the beginning. End-of-year is too late...

 

The tax class is used to determine "best guess" at you annual tax bill. The final tax bill is determined when you submit your tax returns. What you paid up front is set against that and you get a rebate or have to pay extra. Normally the Finanzamt makes sure that you pay too much up front rather than too little.

 

The tax class during the year has no influence on the final tax bill.

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is it something that company takes care usually? if not, could you please tell me where should i go to apply for tax class 3 ?

 

from what i understand, if i apply for tax 3, i will get more money every month, basing on a guess, that i should get more money because i'm paying taxes with my wife. of course it can change when i submit my tax returns, but changing from tax class IV or I to III seems to show much more money netto per month on every tax calculator.

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Okay, just to throw in one more difficult question:

I am currently in class 5, and my husband in class 3 (I think)

He has left me and I am now effectively a one-parent family, and he proposes that we start our "trennungsjahr" in January

Does this mean that I can/should change my tax class in January, and if so, how does one go about it?

thanks!

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robinson100: what you need is a good tax advisor and a good attorney. Both German tax law and divorce law are pretty complex and unless you get good advice, chance that you are getting taken advantage of by your husband are reasonably big. Don't know much about good divorce attorneys meself, but some of the crowd may know. for good tax advice check the adds on TT and the relevant comments. This is too important an issue to just trust some btw-comments. Both tax law and divorce law have seen a number of changes recently through changes or law and verdicts by the German supreme court, so make sure that you'll get advice at the top level, if not for you than for your child...

 

Good luck and Cheerio

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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is it something that company takes care usually? if not, could you please tell me where should i go to apply for tax class 3 ?

You take care of it. You get the card and then you give it to your employer. If you do not provide a card your employer will default you to the worst level.

 

Where you get it, it depends on your city. Normally it is in the Bürgeramt or in the Finanzamt.

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Can anyone here help me with my tax class question? I greatly appreicate any knowledge that can help me figure this out!

 

I am an American moving to Germany in a month, will be employed as a German employee working for a German company, on German payroll.

 

My husband will stay in US and my baby will move with me.

 

What is my tax class in this case? Class I or Class III?

 

Thanks much in advance!

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Most probably Class I +1

 

Your husband will not count as your "non working partner" in order to get the Class III because he does not live in Germany. the "+1" means you have one kid.

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My wife will be staying with me in Germany.

She would be consuming her paid leaves from Indian office.

So she would be getting a payment of around 300 Euro per month. She will be paying tax in India as well.

So Can I say I will be in Tax class 3 and no need to show her to be in any tax class? (She will be anyway on dependent visa so not allowed to work in Germany)?

 

Please advise.

 

Thanks in advance.

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My wife will be staying with me in Germany.

She would be consuming her paid leaves from Indian office.

So she would be getting a payment of around 300 Euro per month. She will be paying tax in India as well.

So Can I say I will be in Tax class 3 and no need to show her to be in any tax class? (She will be anyway on dependent visa so not allowed to work in Germany)?

 

My assumption is that you will be Tax class 3 & she will be Tax class 5 but that the latter is basically irrelevant since she does not have an employer here.

 

HOWEVER as you will both be resident in Germany you are liable for income tax on your entire world-wide income & thus have also to declare her income. Whether there is a dual taxation agreement between Germany and India is outside my knowledge.

 

You might need to investigate whether her income will have an effect on your health insurance arrangements (= costs).

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HEM,

 

Thank you for the inputs and the quick reply.

:)

 

There is dual taxation treaty between India-Germany to the best of my knowledge.

Health insurance is provided by my employer, I will ultimately have to borne the cost, but I will find out the implication from my office.

 

Thanks again

 

Amit

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You will still have to declare her (& your) world income to the Finanzamt.

 

 

Health insurance is provided by my employer, I will ultimately have to borne the cost, but I will find out the implication from my office.

 

What I was getting it is that if your wife has her own income she might be liable to have her own health insurance and YOUR employer will probably not cover that.

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I am moving in Germany but my wife and two young kids will stay back in my home country Greece.

Does anyone know If I can apply for Tax Category III?

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So I just got a new job (yey). We moved to Germany 2 years ago, my partner, me and my daughter. When he registered they didn't want to know about my daughter and me, we had to be separate as we are not married. He could not get any benefit for us as we cannot be registered together.

 

Today I have been told by the finance office that I can only be Class I tax as he lives with me. I said but we are not married, and we are viewed as separate for everything here etc. but the office has said that because he lives with me I don't qualify for Class II.

 

Does this seem fair to everyone? I feel as though this country is penalizing me left right and center for not being married. One minute they won't accept us as a couple and then they do.

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Actually, the law was already changed in late 2003. You can be glad they haven't caught onto you before.

 

The law change followed a 1998 Supreme Court decision that ruled it unconstitutional for an unmarried couple to receive a tax break (through Tax Class II) that a married couple did not. The ruling gave the government the option of either cutting unmarried couples out of Tax Class II, or giving the Tax Class II tax break to married couples as well, and they obviously used the option more beneficial to them.

 

Also, the only difference between Tax Class I (you) and Tax Class IV (married person) is that you cannot receive an additional tax break for your daughter. That one is only applicable to you anyway though if you earn more than about €30,000 pa.

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Hi wonder if anyone could help me with what class I am likely to fall under.

 

I am married with 4 children all under 18 but my with will spend most of her time back in the UK but come here with the family during the holiday times. Does this mean I will be under tax class 1 or 3.

 

Someone told me it would be 1 but it seems harsh as my wife does not work and I still have to support them as well as commute to and from the UK.

 

Any thoughts would be much appreciated :)

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