What is spouse splitting?
Spouse splitting is a tax assessment option for spouses or life partners who have different income levels. The tax advantage resulting from spouse splitting is all the greater, the greater the difference in income between the two. The tax office calculates the tax as if both earn the same. We answer the most important questions about spouse splitting.
joint assessment
Not every taxpayer benefits equally from spouse splitting. But many taxpayers ask themselves how the tax burden can be minimized, especially when it comes to the annual tax return. Married couples and life partners have the best prerequisites for being able to make joint tax assessments. In principle, spouse splitting means that each spouse does not tax their own income separately, but that both incomes are assessed together. The spouse or life partner who earns significantly more is classified in tax class III, the other in tax class V. If both incomes are not far apart, both partners can also choose tax class IV. With these tax classifications, wage tax can be saved on payroll throughout the year.
Determination of the tax for spouse splitting
Spouse splitting takes place in three steps, whereby the taxable income of both partners is first determined and then halved. Then the income tax is determined from the halved income according to the basic rate. In the last step, the calculated income tax is doubled and thus distributed equally to both taxpayers. It should be noted that two basic allowances are also offset against tax if one of the partners is not employed. In addition, spouses and life partners can offset profits and losses against each other. However, it is also possible to have yourself assessed individually as a taxpayer and thus waive the spouse splitting. Another important point is that the spouse splitting applies to the entire calendar year in which the marriage took place. So you can claim it retrospectively for the whole year and benefit from it even if you don’t get married until December.
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