Are there differences in the tax classes for self-employed individuals?
July 8, 2023 | 40,00 EUR | answered by Babette Schneider
Dear Tax Consultant,
My name is Eva Kockel and I work as a freelance photographer. Currently, I am classified in tax class 3, as my spouse is in tax class 5. Now I am wondering if there are differences in tax classes for self-employed individuals and if it might be advantageous for me to change my tax class.
Until now, I was not aware that there may be different regulations for tax classes for self-employed individuals. I am unsure if I could potentially benefit from a different classification in another tax class. I am currently worried that I may be giving away money by being in the wrong tax class or if there are disadvantages for me as a self-employed individual.
Could you please provide me with more information on whether there are specific tax classes for self-employed individuals and if a change in my tax class would be advisable? What documents do you need from me to be able to analyze my situation more accurately? I am counting on your expert advice and I thank you in advance for your help.
Sincerely,
Eva Kockel
Dear Mrs. Kockel,
Thank you for your inquiry regarding tax classes as a self-employed photographer. It is important to be aware of the different options for tax classes, as they can have an impact on the amount of tax you owe.
In general, self-employed individuals are not classified under the usual tax classes 1 to 6, but rather calculate and determine their income tax themselves within the framework of the income tax return. There are no fixed tax classes for self-employed individuals, but you determine your individual tax burden by stating your income and expenses.
However, if you are married and your spouse is in dependent employment, it may be beneficial to review and potentially change your tax classes. In your case, you are currently in tax class 3 and your spouse is in tax class 5. This combination results in your income being taxed at a lower rate and your spouse paying a higher tax rate.
Therefore, it could be advantageous for you to switch to a different tax class in order to pay less taxes overall. However, you should consider that a change in tax class can have an impact on your monthly net income. It is advisable to conduct a precise calculation to determine which tax class is most suitable for you.
In order to analyze your situation more accurately, I would need documents from you such as your profit and loss statement, your income tax returns from the past years, as well as information about your spouse and their income. Based on this information, I can provide you with an individual recommendation on which tax class would be most advantageous for you.
I hope that this information has been helpful to you and I am available for any further questions you may have.
Kind regards,
Babette Schneider
