The Short-time work allowance (Kug) is a wage replacement benefit and is generally tax-free. But it increases the percentage on the remaining taxable income. This is the so-called progression reservation. The result: Anyone who receives a wage replacement benefit such as bullet, unemployment or sick pay in a calendar year must expect additional tax claims from the tax office. This also applies to benefits such as maternity, transitional, injured or parental benefits, as well as old age and early retirement benefits.
For married couples, the calculation is based on the splitting tariff
The childless couple Weber achieved a taxable income of 26 109 euros in 2019. Mr. Weber received 5400 euros in the calendar year Short-time work allowance.
The sum of the taxable income of 26 109 and the progressive income 5400 euros is therefore 31 509 euros and is the fictitious taxable income).
The income tax on the fictitious taxable income is 2658 euros. The progression tax rate is 8.4356 percent (2658 euros times 100 divided by 31 509 euros).
The income tax for the tax year without short-time work benefit would have been 1384 euros. Due to the progression, the tax amounts to 2202 euros (26 109 euros by 8.4356 percent divided by 100). The Webers have to pay the tax authorities without solidarity surcharge and church tax 818 euros more in taxes.
Anyone who works short-time must file a tax return
Employees are receiving Short-time work allowance obliged to file a tax return if the ball exceeds 410 euros a year. Whether there is a tax payment at all and how much it ultimately depends on the income in the year of the short-time work benefit payment. Short-time workers should therefore save at least 70 euros a month so that they can pay in the event of a tax claim. If there is no other taxable income, for example because the spouse has no income, there is usually no additional tax payment.
The progression reservation calculator of the Bavarian State Tax Office determines the income tax burden (without solidarity surcharge and church tax) taking into account the progression reservation.
Income tax advice with the IG Metall service company
The service company of IG Metall offers metal workers cheap tax advice in around 3000 income tax advice centers. On the premises of many IG Metall branches, income tax advice is offered by one of the service company’s cooperation partners. There is no admission fee for IG Metall members and they pay a social tiered contribution depending on their income. Learn more registered members here.