wife's health insurance contribution on low income

6 posts in this topic

Hello everyone,

I just would like to clarify;

We are 5 family members, insured by TK, and I'm working as a full time employee.
My wife started to work as an online freelancer and expected to earn 500-600 EUR per month (net 200EUR).

By consulting the insurance regarding any changes to our family insurance, they stated that:
- Since she is earning 450-1000EUR/month (regardless to the net income - but what comes to her bank account) she has to pay something around 190+ EUR per month.

My questions are:
- Is this a typical procedure?
- Are these fees/contributions differ from insurance provider to another?
- Is it feasible for her if this is her max income? I mean, can she return anything when she do her tax declaration?

Another question if anyone can help (Don't know if it is related to this category):
- How much approximate percentage she is expecting to pay in taxes on this low income?

Many thanks in advance.

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2 hours ago, SlashVortal said:

My wife started to work as an online freelancer and expected to earn 500-600 EUR per month (net 200EUR).

 

 

That's a strange calculation. I'll come back to it ... 

 

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- Is this a typical procedure?

 

Yes, it's a legal requirement. The income limit for free family insurance is €445 (in 2019).

 

The family co-insurance is not really "for free" - somebody pays for it: And because that is the solidarity community of all insured persons, there are limits to income. 

 

Quote

- Are these fees/contributions differ from insurance provider to another?

 

Just minimal. The contribution rate for all statutory health insurance funds is 14.6% (and 14% without entitlement to sickness benefit). The health insurance funds can only charge an individual additional contribution; in 2018 the average was 1%. 

 

Quote

- Is it feasible for her if this is her max income? I mean, can she return anything when she do her tax declaration?

 

She may not have more than 445€ profit before taxes (!) per single month. This may be exceeded for one or two months, but not regularly and not more than €5.340 per year (12 x 445).

 

Why do you think that 500-600 EUR per month are only 200€ net? What do you mean by 'net'? Among freelancers net usually means without sales tax, but what do you mean by that? 

 

Quote

Another question if anyone can help (Don't know if it is related to this category):
- How much approximate percentage she is expecting to pay in taxes on this low income?

 

How much tax she pays depends on her taxable profits and, if you are assessed together, on all your taxable income. If you have the numbers, you can count on one of the many tax calculators. This one is in English.

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Many thanks for your answer:
 

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Why do you think that 500-600 EUR per month are only 200€ net? What do you mean by 'net'? Among freelancers net usually means without sales tax, but what do you mean by that? 


I mean the net profit, because she has some expenses related to what she does.  I suppose to say 200-300 for now. But she is expecting much better income in the third year.

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4 hours ago, SlashVortal said:


I mean the net profit, because she has some expenses related to what she does.  I suppose to say 200-300 for now. But she is expecting much better income in the third year.

 

If she can prove to the AOK that her profit is so low, she can remain in the free family co-insurance. But she has to calculate this for the AOK. 

 

What are these (unusually high) expenses? Does she have to buy material or does she need expensive computer equipment? What exactly is her freelance activity - not that it is not one at all, but a trade. This makes no difference for the insurance company, but for the tax office ...

 

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What are these (unusually high) expenses? Does she have to buy material or does she need expensive computer equipment? What exactly is her freelance activity - not that it is not one at all, but a trade. This makes no difference for the insurance company, but for the tax office ...

 

She do some online Art-related tutorial and she has to buy some materials and studio equipments since she is in an establish mode.

Thanks again.

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someonesdaughter has provided excellent help here, Slash..so you can relax for now. Once your wife starts earning much better income in the third year, as you hint...then revisit the issue. But you should be " safe " for now!

Best wishes!

I am a professional independent insurance broker and authorised advertiser. Contact me.
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