The factor method can be selected instead of the combination III / IV if the spouses / domestic partners want to have more wage tax deduction for the higher-earning spouse / domestic partner so that the lower-earning spouse has a higher net income than in tax class V. This can also prevent the tax office from setting advance payments.
- Tax class VI has a special position. It is awarded when employees receive wages from several employers at the same time.
- If income tax has been withheld according to tax classes V or VI, it is mandatory to submit an income tax return.
Which tax brackets do spouses choose in the current year?
How often is it possible to change the tax class?
The entry of the tax class follows the actual living conditions of the employee. A change in the tax class is therefore only possible if the tax-relevant living conditions change. The tax class combination for spouses / partners is an exception. Spouses / life partners can apply for a change of tax class up to November 30th in the current calendar year. This is also possible several times. The tax office is responsible for the change.
Are tax exemptions granted automatically?
A number of tax exemptions and lump sums are automatically taken into account when deducting income tax. A lump sum means that a certain amount is applied as a lump sum, regardless of the actual expenses. If the actual expenses are above the lump sum, the actual allowable amounts will be credited on proof.
The amounts that result from the individual wage tax deduction features and the structure of the tax rate are
The basic allowance that spares the subsistence level from taxation (€ 9,168 (from 2020: € 9,408)),
- The employee lump sum (for income-related expenses),
- The lump sum for special expenses,
- The flat rate pension,
- For tax class II: the relief amount for single parents.
All of these amounts are included in the tax calculation without you having to submit an application. The exempt amount for pension payments and the retirement benefit for those pensioners who are also in active employment are also taken into account by the employer without any action on your part.
Certain individual allowances can also be entered as wage tax deduction times. An application to your tax office is required for this. With the factor method, the exemptions are included in the determination of the factor. In addition to the factor, no allowances can therefore be taken into account as a wage tax deduction feature. Follow the results for tax return calculator in this case.
Which allowances can I have taken into account as a wage tax deduction feature?
Certain expenses that are expected to arise in the calendar year can be taken into account as an exemption within the framework of the wage tax deduction criteria.