Is financing even possible?

2016-10-21 09:16:40

what about health insurance and pension insurance?

If she doesn’t work, she will have less pension and you have to insure her privately.

It lags a bit, dear Steffen :p

It only lags a little.. I would of course hire her in that case and thus she would be insured. But indeed it also costs money.. maybe it will balance out +/- :)

2016-10-21 09:19:30

Does the progression clause really have something to do with the tax class? I mean, the tax rate my wife and I have to pay also has nothing to do with the tax classes, right? If I'm wrong, which combination would have been the right one?

I still don't understand it, if your wife has 1500 net, the taxes are already deducted. Okay, with the tax return there's of course the final settlement - I assume you pay at least the 42% rate (why is it still called the top tax rate..).

After setting our KiTa contribution, I complained to the local district office.. they're not functioning properly; money is available for every "nonsense," but not for the care of the children of "diligent taxpayers." Of course, it didn't help except that I got my frustration off my chest.

I can't explain it to you in detail. We had a conversation with our tax advisor about marriage 4 weeks ago.
It makes a huge difference which tax class you are in when the spouses earn very differently.
In other words, as soon as you know you're pregnant, you change the tax class so that you get more net income and thus can receive more parental allowance (provided this is not eaten up by the husband's higher taxes). Once the child is born, you change back so that the husband is in the lower tax class and the progression clause doesn't hit so hard.
He once calculated it for us. Since we both earn quite similarly, it would maybe make 2000 euros difference for us. But hey, better to have than not.

2016-10-21 09:20:33

I still don't get it, if your wife has 1500 net, the taxes are already deducted. Okay, with the tax return, there's, of course, the final settlement - I assume you pay at least the 42% rate (why is it still called the top tax rate anyway..).

I am not a tax expert.. just repeating what I have in black and white from our tax office. And it says: 12,800 EUR less taxes due to 0 EUR income (she had no parental allowance in the second year anymore).

I also have to correct my last post: Insurance is not an issue after all.. because the question was actually: 2 or 3 years of parental leave. During parental leave, however, she is insured through the employer.

2016-10-21 09:22:07

I can't explain it to you in detail. We had a conversation with our tax advisor about marriage four weeks ago. It makes a huge difference which tax class you are in if the spouses earn very differently. As soon as you know you are pregnant, you change the tax class so that you get more net income and can thus receive more parental allowance (provided that this is not eaten up by the husband's higher taxes). Once the child is born, you change back so that the husband is in the lower tax class and the progression clause doesn't hit as hard. He calculated this for us once. Since we both earn quite similarly, it might make about 2,000 euros for us. But hey, better to have than not.

Regarding parental allowance, you are right. However, the tax class ultimately has no influence on the amount of taxes. Everyone pays a total amount X in taxes at the end of the year, regardless of the class... only the monthly "installment amount" is determined by it :)

2016-10-21 09:48:03

But that means ... the higher salary must be taxed with class 5 for 2 years just so I receive the higher parental allowance amount since the change is only possible annually ... well, the tax advisor has surely taken all factors into account ... illness etc..

2016-10-21 09:51:07

1. The tax declaration class does not influence the actual tax owed, which is ultimately determined in the joint assessment ([Lohnsteuerjahresausgleich]). 2. However, the choice of tax declaration class affects the net income during the year. 3. Benefits dependent on the net income (not only [Elterngeld] ...) can therefore be optimized by "clever" choice of the tax declaration class.

Is financing even possible?

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