Saving taxes through marriage
A marriage is celebrated primarily out of love and connects lovers to a solid unit in both family and financial terms. For many couples, however, this significant step is also the way to new tax brackets, which, with a clever combination, lead to tax savings through marriage. But not every combination of tax brackets makes sense.
How to save taxes by getting married
- If you want to save on taxes after your marriage, it is important that you apply for the best combination of income tax brackets for you based on your salary. This enables you to save taxes under certain conditions.
- If you do not apply for a specific income tax bracket, you will be allocated to income tax bracket IV, which roughly corresponds to the deductions for tax bracket I. However, if you would like to apply for a different class due to certain circumstances, you must be notified by the 30th Submit a corresponding application to your municipality or the Citizens' Registration Office on November 1st of the year in question.
- In addition, you have to decide whether you want to be assessed separately or jointly, because the so-called spouse splitting can also save taxes through marriage.
Save taxes with spouse splitting
- The splitting process means that your taxable income is added up and then halved. Your adjusted income is calculated according to the current income tax rate and the wage tax calculated in this way is doubled. In this way, the tax liability, which increases with increasing income and is also called progression, is reduced.
- Unfortunately, the splitting variant only pays off if you or your partner use a much lower one Have to bear the tax burden of the other or to expect losses, for example from a sideline are. It is therefore essential to check carefully before making your decision.
How do I choose the right income tax brackets after getting married?
A new chapter in life begins with marriage. At least now it is time for a few ...
The combination of tax brackets after marriage
- After the marriage, unless you apply for a different one, you will be assigned tax class IV for each partner. This class makes sense for you if you both have approximately the same income. However, in this variant no tax savings are possible, but the entry of child allowances is possible.
- If you would like to save taxes through your marriage with the right combination, you have the option of opting for tax classes III / V. The following rule of thumb applies to this classification: One of the partners should achieve at least 60 percent of the total gross income in order to obtain a tax advantage.
- The one of you who has more income opts for class III and thus has fewer deductions from gross income. Under certain circumstances, this can also be an advantage for mothers-to-be, or if you should become unemployed in the foreseeable future, for the respective calculation basis of the subsidies. However, in the case of tax class V, you have significantly higher tax burdens. In some cases, this variation also results in additional tax payments, so that you do not save taxes through your marriage and the possible change.
- In order to be able to save taxes after the marriage you should consider choosing the right income tax bracket as well as determining it Think carefully about separate or jointly assessed taxation so as not to incur any tax disadvantages achieve.
- If you are unsure, you can get a rough estimate on the basis of various computers in the network. To be on the safe side, we recommend that you visit a tax advisor or tax aid association, where you can get individual advice.
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