Which tax bracket is the best for single parents?
August 16, 2023 | 30,00 EUR | answered by Babette Schneider
Dear tax advisor,
My name is Ammelie Stamm and I am a single parent of two children. I am facing the decision of which tax class to be classified in. Currently, I am classified in tax class II, but I am wondering if this is the best choice for me and my children.
My monthly income is rather low due to my part-time job as a saleswoman, so I would like to know if another tax class for single parents would be more advantageous for me. I am concerned that I may have to pay too much in taxes and be financially burdened as a result.
Which tax class would you recommend for me as a single parent with low income? Are there any special regulations or benefits that I can take advantage of? How can I ensure that I do not pay more taxes than necessary and that my monthly budget is relieved?
I would be very grateful if you could help me with this important decision and provide me with possible solutions. Thank you in advance for your support.
Sincerely,
Ammelie Stamm
Dear Mrs. Stamm,
Thank you for your inquiry regarding your tax class as a single parent with low income. It is understandable that you are concerned about whether the current classification in tax class II is the best choice for you and your children. As a tax advisor, I would like to help you further and provide you with some important information and recommendations.
First of all, it is important to know that tax class II is intended for single parents to provide them with tax relief. In this tax class, you receive a higher basic tax allowance and a relief amount for single parents. This reduces your taxable income and you pay less taxes.
However, in some cases, it may also be beneficial to choose a different tax class, especially if you have a low income. One option would be to be classified in tax class I, which is intended for singles or single parents without a relief amount. In this tax class, although slightly higher taxes are payable, you may benefit from a lower solidarity surcharge and possibly higher loss offsetting.
Furthermore, there is the option to apply for a wage tax reduction. Here you can claim certain allowances that further reduce your tax burden. For example, you could claim tax-deductible expenses for childcare or household-related services.
To ensure that you do not pay more taxes than necessary and your monthly budget is relieved, I recommend that you seek individual tax advice. A tax advisor can analyze your personal situation, show you tax optimization options, and support you in choosing the appropriate tax class.
I hope that this information has been helpful to you. If you have any further questions or would like a detailed consultation, I am at your disposal. I wish you success in your decision and am happy to assist you if needed.
Best regards,
Babette Schneider, Tax Advisor
