What is better: IV/IV or III/V or IV/IV with work-factor method?

There is no one-size-fits-all answer to this question. The optimal combination of tax classes depends on your individual income situation and financial priorities. Here is an overview of how the different combinations work:

IV/IV with factor method: Fair and balanced

• The income tax burden is divided according to the actual ratio of wages between the spouses.
• Ideal if both partners earn an income but have different salary levels.
• Obligation to submit a tax return: Ensures that overpaid or underpaid tax is balanced.

III/V: Low tax deductions in the calendar year

• One spouse (tax class III) pays significantly less income tax, while the other (tax class V) pays more.
• Particularly advantageous for large income differences when one partner is the main earner.
• Note: With this combination, there is always an obligation to submit a tax return to balance possible additional payments or refunds.

IV/IV: Simple and without obligation to submit a tax return

• Both spouses pay according to the same tax rate, regardless of their income.
• Suitable for partners with similar incomes, as no major additional payments or refunds are expected.
• Option: Overpaid tax can be refunded upon request through a tax return.

Further aspects of choosing a tax class

• Impact on wage replacement benefits: The choice of tax class affects the amount of wage replacement benefits such as unemployment benefit I, sickness benefit, maternity benefit or parental benefit. These benefits are based on net income, which depends on the chosen tax class.
• Change of tax classes: Changing the tax class or choosing the factor method during the year can have unexpected effects, especially in the case of:
  • Receipt of wage replacement benefits
  • Partial retirement or similar agreements
• Obligation to submit a tax return:
  • With the combinations III/V and IV/IV with factor method, there is always an obligation to submit a tax return.
  • For IV/IV without factor method, this obligation only exists in certain cases, such as high additional income.
• Advance consultation: If you plan to claim or are already receiving wage replacement benefits, you should contact your social benefit provider in good time. In partial retirement, it may also be advisable to coordinate with your employer.

Conclusion: The choice of tax class has a direct impact on the monthly income tax burden and the amount of wage replacement benefits. However, it does not affect the amount of the final income tax, as this is based on