Why am I in tax class 1 when I am married, and can I get class 3?

What are the six German tax classes?

Every worker in Germany has a tax class (Steuerklasse). It is set by law (§ 38b EStG) and tells the employer how much wage tax to take each month.

Why am I in class I when I am married?

Classes III and IV are only for couples where both spouses count as fully taxable in Germany. The law says that a spouse counts only if they meet § 1 (1) or (2) EStG, or § 1a EStG.

A spouse who lives in Romania, Bulgaria or Poland is not fully taxable in Germany. They count only through § 1a, and only on application. Without that, you are in class I. That is usually not a mistake by your employer.

Does a better tax class give me a bigger refund?

No. The tax class only spreads the tax over the year. The employer takes tax each month based on a projected yearly wage (§ 39b EStG). The tax for the year is set in the assessment, where the wage tax already taken is credited (§ 46 EStG).

With class III you pay less each month, so less comes back later. What lowers the tax for the year is joint taxation in the return, and you can apply for that even if you were in class I all year.

I live in Germany and my spouse lives at home. Can we be taxed together?

Yes. If you are an EU citizen and live in Germany, your spouse in another EU or EEA country is treated as fully taxable on application (§ 1a (1) Nr. 2 EStG). The official tax handbook applies this to a spouse in Switzerland too. You then get joint taxation (Zusammenveranlagung) and the splitting tariff.

For you there is no income limit. The Bundesfinanzhof decided in 2010 (I R 28/10) that residents can claim it even when the couple's foreign income is high. In that case the wife lived in Poland. Your spouse's income abroad is not taxed in Germany, but it raises the tax rate on your German income (Progressionsvorbehalt). You apply in Anlage WA-ESt of your return.

I do not live in Germany. Is there an income test?

Yes. If you have no home in Germany, you must first be treated as fully taxable (§ 1 (3) EStG). For a couple the test looks at both spouses together: at least 90 % of the couple's income must be taxed in Germany, or the income not taxed in Germany must not be more than twice the Grundfreibetrag, reduced for your home country.

Foreign income is counted under German tax rules. If it is above the limit that way, joint taxation is not possible, even if it is lower under your home country's rules.

Can I get class III during the year?

If you have no home in Germany, you can apply with the form Anlage Grenzpendler EU/EWR. Bilingual versions exist in German with Romanian, Bulgarian or Polish, published by the Bavarian tax office. Your spouse signs too, and your home tax office confirms the details in part D. The Finanzamt of your employer's workplace then gives you a certificate for your employer.

On a first application, add a copy of your passport or ID card. Part D can be skipped if a confirmed form exists for one of the two previous years and nothing has changed.

If you live in Germany, your Wohnsitzfinanzamt sets the class. Ask it which form to use.

Who confirms my spouse's income at home?

For the Bescheinigung EU/EWR, or part D of the Anlage Grenzpendler, you need the tax office in your home country.

• Romania: ANAF certifies the German form Bescheinigung EU/EWR. You can file the request online in SPV (Spațiul Privat Virtual).
• Bulgaria: НАП (NRA) certifies German forms, including the Bescheinigung EU/EWR, on the request Обр. № Окд-51. НАП does not fill in German forms, so bring them filled in and signed. Online through the НАП portal with КЕП or ПИК.
• Poland: the urząd skarbowy issues a certificate for a foreign authority, free through e-Urząd Skarbowy, 17 zł on paper, within 7 days. The official page does not say if this route stamps the German form itself, so ask your urząd.

What should I do, step by step?

1. Check your class on your payslip or in the field Steuerklasse/Faktor of the Lohnsteuerbescheinigung.
2. For each year, decide: did you live in Germany, or not?
3. If you lived in Germany: apply for joint taxation in your return, in Anlage WA-ESt. There is no income limit.
4. If you did not live in Germany: check the income test with that year's couple limit and your country's factor.
5. If it is met, apply in the return with the Bescheinigung EU/EWR, or during the year with the Anlage Grenzpendler EU/EWR (then filing is compulsory).
6. Have the certificate confirmed by ANAF, НАП or the urząd skarbowy, even if your spouse had no income.
7. Both spouses sign the joint return by hand (§ 25 (3) EStG).

Where Geldback helps

Geldback asks where you and your spouse lived, works out which route applies to you, and fills in the joint return and Anlage WA-ESt. It tells you that the Bescheinigung EU/EWR must be confirmed by ANAF, НАП or the urząd skarbowy, and that both of you sign. It costs 49 € for the first year.

Geldback does not apply for class III during the year, does not fill in the Anlage Grenzpendler for your employer, and does not get the confirmation from your home tax office for you. It does not decide borderline income tests. The Finanzamt decides.