Choosing tax class 3/5 without a significant income difference
Mistake:
Some couples choose the 3/5 combination even though their incomes are almost the same.
This leads to an unbalanced tax burden and increases the likelihood of an additional tax payment at the end of the year.
Solution:
If both partners earn roughly the same, it is usually better to choose 4/4 or 4/4 with factor.
Use the official tax calculator provided by the Finanzamt to find the best option for your situation.
Forgetting to change tax class after divorce or separation
Mistake:
Some people remain in tax class 3 or 4 after a divorce or permanent separation – which is not allowed.
Solution:
You must inform the Finanzamt immediately and change to tax class 1 (or tax class 2 if you have a child living with you).
Not giving your Steuer-ID to the employer
Mistake:
If you do not provide your Steuer-ID, you will usually be placed automatically in tax class 6, which has very high deductions.
Solution:
At the start of a new job, make sure to give your employer:
your Steuer-ID
your date of birth
your correct current address
Not updating tax class after the birth of a child
Mistake:
Many single mothers or fathers do not apply to move to tax class 2 after their child is born.
Solution:
If a child is born and you are the only person who supports and lives with the child, you should apply immediately for a change to tax class 2 in order to benefit from:
the Entlastungsbetrag für Alleinerziehende (annual tax relief of around €4,260 for single parents)
Not using the factor method in tax class 4
Mistake:
Many couples in tax class 4 do not use the “with factor” option, which can cause inaccurate monthly deductions.
Solution:
Activate the Faktorverfahren so that the tax burden is distributed more precisely according to each partner’s income – especially if you want to avoid unpleasant surprises and extra payments at the end of the year.
Missing the deadline for changing tax class (after 30 November)
Mistake:
Some people decide to change their tax class too late and miss the chance to improve their net salary for the current year.
Solution:
Keep an eye on the deadlines and submit your application for a tax class change no later than 30 November of the same year.
You can do this via ELSTER or by submitting a paper form to the Finanzamt.
Assuming that tax class always changes social benefits
Mistake:
Many people believe that changing tax class will automatically increase Bürgergeld or Wohngeld. This is not correct.
Explanation:
These benefits are based on your actual net income, not just on your tax class.
Tax class mainly has a direct impact on ALG I, Elterngeld and Kinderzuschlag, because they are calculated directly from your net salary.
Final tip:
Before you choose or change a tax class, ask yourself:
How big is the income difference between me and my partner?
Do I have a child living with me as a single parent?
Do I have more than one job?
Am I planning to apply for Elterngeld or ALG I soon?
If you answer these questions carefully, you will be able to make a much better and more informed decision about your tax class.
The writing and editorial team of this site aims to provide accurate information based on thorough research and multiple sources. However, errors or uncertainties cannot be completely excluded. Please treat the information in this article as an initial, non-binding guide and always contact the tax office or a professional tax adviser for binding and up-to-date advice.
