Optimize tax class changes for parental allowance?
Hello everyone,
I have a question: We're planning on having a baby and are currently in tax bracket 3 for me and 5 for my wife. With tax bracket 5, my wife doesn't reach the €1,800 parental allowance, but with tax bracket 4, things are different, and she could receive the maximum amount of €1,800. Therefore, we're considering switching to tax bracket 4. Can we switch back to tax brackets 3 and 5 after the birth, or is that not permitted? And if switching is permitted, will that affect the parental allowance?
Best regards
(1 votes)
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A change in the tax class is possible every month.
It is best if it takes the 3 but it must be timely before the pregnancy enters. You get the money back with the tax declaration. But the parental allowance is higher.
After that you return to 3/5, after the birth.
Yeah, but it doesn’t make sense.
Not that. But it has an influence on income tax.
Parental allowance is tax-free, as it is a wage earner. This is why it doesn’t matter what tax class the parental allowance is grouped in.
The tax class 3 would probably mean a tax repayment for the man at the end of the year (because he paid less pay tax than he would have).
And: Parental allowance is subject to the advancement. These wage earners do not increase the “taxable income” but do not affect the tax rate applied to the rest of the income. Since the tax rate is higher with the parent money paid than without, the tax on most freshly-baked parents is higher and therefore a repayment to the tax office – only if the man has hardly paid any taxes by the “better” tax class.