Why might separate assessment be beneficial for wage replacement benefits?

In certain cases, individual assessment for spouses may be more advantageous, especially if only one spouse receives tax-free wage replacement benefits (e.g. unemployment benefit, parental benefit or sickness benefit), while the other partner receives only taxable income.

The impact of the progression clause

With joint assessment, the tax-free wage replacement benefit increases the tax rate for the total income of both spouses, even though this benefit itself is tax-free. This leads to a higher tax burden on the taxable income.

Advantages of individual assessment

• No impact of the progression clause: The spouse without wage replacement benefits is not affected by the higher tax rate.
• Individual tax calculation: Each spouse pays only the tax on their own income.

Important consideration

Although the splitting tariff of joint assessment is not available with individual assessment, the relief from avoiding the progression clause may outweigh this disadvantage. It is advisable to calculate both options to find the most tax-efficient solution.

Conclusion: If one spouse receives tax-free wage replacement benefits, individual assessment is an option worth considering. Tax programmes such as Lohnsteuer kompakt or advice from a tax expert can help make the optimal decision.