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Old 28.01.2020, 02:07
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Tax category C

Does anybody know what are the conditions in case of witholding tax to be considered in tax category C (tariff C)? I though the spouse has to be "gainfully employed". I have worked 20 hours but spread through a whole year (I am a teacher), which I wouldn't consider gainfully employed, but basically my husband salary went to tarrif C taxation. The "funny" thing is that this happened retro-actively after 1 year, and that's when we found out about this. This means that for each month that I earned almost nothing, we have to pay 200-300 more CHF. Is this correct? Something seems very wrong.
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Old 28.01.2020, 02:38
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Re: Tax category C

I am very confused by your post.

What is tax category/tariff C? Which canton do you live in (ZH?)? Are you (or your husband) on B permits, or something else? By "withholding tax", do you mean Quellensteuer (income tax at source)?
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Old 28.01.2020, 06:26
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Re: Tax category C

C is the tariff for married persons
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Old 28.01.2020, 10:24
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Re: Tax category C

Quote:
I am very confused by your post.

What is tax category/tariff C? Which canton do you live in (ZH?)? Are you (or your husband) on B permits, or something else? By "withholding tax", do you mean Quellensteuer (income tax at source)?

Sorry, I posted the message late last night. We live in canton ZH, we are on B persmits, and yes we are talking about tax at source.
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Old 28.01.2020, 10:27
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Re: Tax category C

Quote:
I am very confused by your post.

What is tax category/tariff C? Which canton do you live in (ZH?)? Are you (or your husband) on B permits, or something else? By "withholding tax", do you mean Quellensteuer (income tax at source)?
Tariff C means "Married couples with two earners". Tariff B: Married couples with only one earner.
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Old 28.01.2020, 10:28
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Re: Tax category C

Quote:
I am very confused by your post.

By "withholding tax", do you mean Quellensteuer (income tax at source)?
Tax at source tariffs are (Tarif in German, barème in French):

Tariff A - Single people (also in case you are leagally separated)
Tariff B - Married couples with single income
Tariff C - Married couples with double income
Tariff H - Single-parent families

Tariffs with special tax rates which are:
Tariff D - Second income from sideline job
Tariff E - Small income using the simplified procedure (mainly used for domestic workers, self employed cleaners)

A number after a tariff letter denotes the number of tax relevant childrens.

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This means that for each month that I earned almost nothing, we have to pay 200-300 more CHF. Is this correct? Something seems very wrong.
It is technically correct and a "well known" effect. If one spouse has only a small income the tax at source tariff are heaviliy skewed. Without further investigation, I assume that the tariff C is "correct" for a 60:40 income split. A tighter split like 50:50 and you will profit, a wider split like 80:20 and you lose.

You migth compare your current tax burden against regular taxation which is the ground truth. If you see a big discrepancy you could at least try and appeal that you should be subject to regular taxation as tax at source does not really tax you according your economic capabilities. Be aware that a certain discrepancy between tax at source and regular taxation has to accepted. How much is open to debate. The federal court once rulled that a discrepancy of 20% in the regular taxation of married with children vs. a non-married couple with children which paid less tax has to be accepted BGE 120 Ia 329 http://relevancy.bger.ch/php/clir/ht...=show_document
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Last edited by aSwissInTheUS; 28.01.2020 at 10:47.
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Old 28.01.2020, 10:57
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Re: Tax category C

Thank you for your reply! So this doesn't depend on the spouse being "gainfully employed" which means having a steady work and payment from an employer? That's the info I found research a little bit on the topic - not enough apparently. I mean if I work 20 hours in one month I get a tax, but if I work 20 hours in 8 month means, that for the same amount of money I get taxed 8 times more? Doesn't make any sense.
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Old 28.01.2020, 11:15
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Re: Tax category C

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I mean if I work 20 hours in one month I get a tax, but if I work 20 hours in 8 month means, that for the same amount of money I get taxed 8 times more? Doesn't make any sense.

8 times more? You mean like CHF 16 instead of CHF 2 ? Wow big injustice, call the press and Amnesty International.

But you might explain me how else you get 8 times more given tariff C.
https://www.steueramt.zh.ch/internet...de/tarife.html

PS: A person on regular taxation would pay CHF 24.
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Old 28.01.2020, 11:27
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Re: Tax category C

It's about the tax at source payed by my husband, that's what got to tarrif C because I worked. Which means paying 300+ chf more for each month that I worked. I worked 20 hours, but in like 8 months, so this means 300+ chf * 8 months. If I had worked the 20 hours in a single months the 300+ chf amount would had been payed only once, that's what I meant by 8 time more.
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Old 28.01.2020, 11:36
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Re: Tax category C

Download private tax and fill in the regular return. Than compare and complain.

Please be so free and also compare regular taxation vs. the case where you did not work and the whole year the husband had been on tariff B.
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Old 28.01.2020, 11:42
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Re: Tax category C

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8 times more? You mean like CHF 16 instead of CHF 2 ? Wow big injustice, call the press and Amnesty International.

But you might explain me how else you get 8 times more given tariff C.
https://www.steueramt.zh.ch/internet...de/tarife.html

PS: A person on regular taxation would pay CHF 24.
Why this snarky remark? OP clearly mentioned they had to pay 300 chf more for each month she worked.

@OP,

Doesn't your bank provide a tax consultant? Use their services. You won't get the answers to your particular situation on EF.

If you feel like you payed 300 more for each of the 8 months you had worked (regardless of the number of hours), then spending a few more for tax advise is not that bad.
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Old 28.01.2020, 11:54
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Re: Tax category C

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Why this snarky remark?
Because you never ever hear the following: Hi, we are a couple on tax at source. We live in a high tax multiplier commune like Wetzikon. We did the math and have seen that if we were regularly taxed we would have to pay CHF 2000 more tax per year. As we want to pay our fair share of taxes, how and where can we pay the difference? Thank you.

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Doesn't your bank provide a tax consultant? Use their services. You won't get the answers to your particular situation on EF.
The answer is simple:
1) Do not work
2) If you work get a substantial income
3) Challenge the tax at source
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Old 28.01.2020, 12:11
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Re: Tax category C

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Why this snarky remark? OP clearly mentioned they had to pay 300 chf more for each month she worked.

@OP,

Doesn't your bank provide a tax consultant? Use their services. You won't get the answers to your particular situation on EF.

If you feel like you payed 300 more for each of the 8 months you had worked (regardless of the number of hours), then spending a few more for tax advise is not that bad.
Thank you. That's what I will do, ask the tax specialist that helped me before. I thought of asking on EF maybe somebody had the same problems.
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Old 28.01.2020, 13:57
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Re: Tax category C

This is how it is. "gainfully employed" means any income. It could be that you loose more on tax than you earn. So check your numbers (exact tax rates here: https://www.steueramt.zh.ch/internet...de/tarife.html ), and don't work under a certain amount of hours.
Additionally the tax office at our gemeinde told, they won't adjust back to category 'B' if you have no-income 1-2 months, only after 4.
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