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