Background Until now, spouses or registered civil partners could choose between joint assessment (Zusammenveranlagung), separate assessment (getrennte Veranlagung), and individual assessment (Einzelveranlagung). In most cases, joint assessment results in the lowest income tax burden, as there is a so-called "splitting advantage" and certain tax benefits are doubled or can be transferred to the other partner if one partner does not fully use them. Separate assessment, which could be chosen in the past, is available for the last time for the 2012 tax year. From 2013 onwards, the only options will be joint assessment or individual assessment. Differences: separate assessment vs. individual assessment? Under separate assessment, certain expenses such as some special expenses (Sonderausgaben), extraordinary burdens (außergewöhnliche Belastungen), or household-related services could be allocated in a tax-optimised manner. This is no longer possible under the new individual assessment from 2013 onwards. Going forward, costs must be allocated to the spouse or partner who actually bore them economically. However, for reasons of simplification, a 50/50 split of costs may be applied upon a joint application if the spouses agree. Extraordinary burdens such as medical expenses only have a tax effect to the extent the costs exceed the so-called "reasonable burden" (zumutbare Belastung), which depends, for example, on the level of income. Under separate assessment, the reasonable own burden was calculated based on the combined income of both partners. What is new is that under individual assessment, this is determined separately based on the total income of each individual spouse. The following expenses can still be split between partners in a tax-optimised manner under individual assessment, provided a joint application is made:
- Childcare costs
- Training allowance (Ausbildungsfreibetrag) for a child accommodated away from home
- Transfer of a disability or survivor's allowance of a child to the parents
Compared to joint assessment, individual assessment may be beneficial in cases such as the following:
- Severance payments
- Wage replacement benefits such as sick pay, unemployment benefits, or parental allowance
- Second course of study
We are happy to review whether individual assessment may make sense in your case. If we prepare your income tax return, this review is carried out automatically. Change of assessment type now only possible under certain conditions From 2013 onwards, the type of assessment becomes binding upon filing of the tax return for the relevant assessment period. Thereafter, the type of assessment can only be changed within the scope of specific amendment provisions. Previously, by contrast, spouses could change the choice of assessment type made when filing the tax return as often as they wished, up until the assessment notice became final.
Frequently asked questions
Frequently asked questions
Which assessment types can spouses still choose from the 2013 tax year onwards?
From the 2013 assessment period onwards, spouses and registered civil partners can only choose between joint assessment (Zusammenveranlagung) and individual assessment (Einzelveranlagung). The previously available separate assessment (getrennte Veranlagung) has been abolished and was permitted for the last time for the year 2012.
How does individual assessment from 2013 onward differ from the previous separate assessment?
Under the former separate assessment, special expenses, extraordinary burdens, and household-related services could be freely allocated between spouses. Under individual assessment, these costs are generally attributed to the spouse who actually bore them economically. However, upon a joint application, an equal 50/50 split is permitted for simplification purposes.
How is the reasonable burden for extraordinary expenses determined under individual assessment?
Under individual assessment (Einzelveranlagung), the reasonable burden is calculated separately for each spouse based on their own total income. This differs from the former separate assessment, where the reasonable burden was determined using the combined total income of both partners.
In which cases can individual assessment be more tax-advantageous than joint assessment?
Individual assessment can be particularly worthwhile if one spouse receives a severance payment, draws wage replacement benefits such as sick pay, unemployment benefits, or parental allowance, or is pursuing a second course of study. In such situations, separate tax calculation may, in individual cases, result in a lower overall tax burden than the splitting tariff applied under joint assessment.
Can the chosen assessment type still be changed retroactively from 2013 onwards?
From 2013 onwards, the assessment type generally becomes binding upon submission of the tax return. A subsequent change is only possible within the scope of specific correction and amendment provisions. Previously, the chosen option could be changed any number of times until the tax assessment became final.