If you are married, or run a household together, you are (usually) considered by the tax authorities as tax partners, and you fill in your annual tax return together. What does such a tax partnership mean? What are the pros and cons?
To be considered a tax partner by the tax authorities, you must meet one of the following requirements:
– you must be married
have a registered partnership
– have a cohabitation contract
– have a child together (or have officially recognized your partner’s child)
– joint ownership of a house (where you live together)
– have included someone as a pension partner
“If one of these conditions applies to you, you are a tax partner,” says Tosca Voogd from Belastingbespaarders.nl. You can also be a tax partner with your child. “If he or she is 27 years or older and you have bought a house together, for example.” In that case, it is easiest to file a digital statement together. But it can also be done separately, according to the Tax Administration. It is useful to consult in that case.
You can deduct deductions – such as tuition costs, specific health expenses and gifts – from those who pay the most tax
What are the benefits of a tax partnership?
The benefits of the tax partnership have to do with the ‘optimal distribution’. Tax partners can distribute their deductible items and wealth among themselves in such a way that they jointly have to pay the least possible tax.
“Suppose your partner falls into the second tax bracket with his income and you fall into the first group because you earn less,” Voogd says. “Then you can deduct deductions – such as tuition costs, specific health expenses and gifts – from the one who pays the most in taxes.” For example, the income that falls in the second bracket will be lower and the joint taxes that both pay will fall.
It is also possible to deposit the deductible items partly with one partner and partly with the other partner. “Accountants use paid software to calculate the best distribution,” says Voogd. “At the end of the tax return, you can try for yourself which division is most favorable to you.”
Less wealth tax for tax partners
Another benefit is the wealth tax. The tax-free allowance for a person is 50,000 euros (in 2021). With a tax partner, this amount is 100,000 euros. “If you have 80,000 euros and your partner 10,000 euros, you do not pay wealth tax together,” says Voogd.
A third and final benefit is the tax deduction. If both tax partners work (with a minimum income of 5153 euros per year) and have a child under the age of 12, they can receive an ‘income-dependent combination discount’ of a maximum of 2815 euros (in 2021). “For example, the government will encourage both parents of young children to work,” Voogd says. This discount is automatically deducted when filling out the tax return.
If both tax partners have an owner-occupied home, only one can fall into Box 1 (taxable income from work and housing).
Are there disadvantages as well?
“If both tax partners have their own owner-occupied housing, only one can fall into Box 1 (taxable income from work and housing),” Voogd says. The second home then falls into Box 3 (news of savings and investments). In that case, a certain percentage of the WOZ value must be taxed by this house and it is not possible to deduct the mortgage interest rates. You can only deduct mortgage interest from one home. ”
Another disadvantage is that the threshold for being allowed to deduct certain costs is higher with a tax partner. For example, you can deduct health expenses over a certain limit. That threshold is 1.65 percent of the common income (between 7,989 and 42,434 euros in 2021). Voogd: “Suppose you earn 10,000 euros yourself, then you can deduct health expenses from over 165 euros. If you earn 40,000 euros with your partner, that limit is already 660 euros in health expenses. “
No longer a tax partner halfway through the year?
And what if your tax partner is no longer a tax partner halfway through the year, for example due to a divorce? “You can then choose to implement the tax together that year. You will then still be seen as a tax partner throughout that year, ”says Voogd. “It makes the administration easier. In practice, we see that most people choose this. ” It is also possible to submit a summary for part of the year and partly separately. “For example, it can be an advantage if both partners buy their own house.”
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