One of the first questions that arises when we start filing our tax returns is whether to choose to file individually or jointly. The best option depends on the personal situation of each spouse, specifically whether both are working, have children, are paying a mortgage or if one of the two members is unemployed.
And not everything is optional, as there are some requirements that we must meet in order to be eligible for the joint plan. Here we explain them to you.
Who can file a joint return?
One of these two requirements must be met, have children or be married.
If there is no living marriage bond, that is, legally separated, your partner has died or you are in a de facto relationship, You have to have children and live with them at the same address to be eligible for joint ownership.
If you are a de facto couple only one of the two You may file a joint return with your children. The other parent will have to file it individually.
What happens if both spouses receive income from work?
In the event that the two spouses work, the statement compensates more individual since they will be able to benefit from the personal minimums that have been raised this year. Thus, if the declaration is made individually, each person deducts that amount on their own, that is, a reduction that is multiplied by two. The personal minimum was raised to 5,550, from 5,151 euros, which gives a joint balance of 11,100 euros.
In the case of a joint declaration, the deduction of 5,550 euros is also applicable, but only once. The reduction for joint taxation can be applied to this amount, but this is 3,400 euros. In total, we can apply 8,551 euros, which will obviously be a disadvantage.
What if only one of the two taxpayers works or the other has low income?
If you only have income from work, it is worth doing it in a joint. Thus, in addition to benefiting from the personal minimum, it is necessary to add per family unit (3,400 euros) and per children.
What happens when we have a mortgage with the deduction for primary residence?
When we have a mortgage that encumbers our habitual residence, the most advantageous thing is to file an income tax return separately, since each member of the couple can benefit from the deduction for the purchase of a primary residence: the 15% of 9,040 euros. That is, individually, a 15% deduction would be applied for a maximum of 18,080 euros.
However, if the tax return is made jointly, the deduction is only 15% on a maximum of 9,040 euros for both members.
What if you have children?
If you have children, it is most advantageous to file the declaration separately. joint, since each of them is entitled to a reduction in the tax base, which ranges from 2,400 euros per year for the first child to 4,500 euros per year for the fourth and subsequent children. In addition, to benefit from these reductions, your children must live with the taxpayers and be under 25 years of age or older with a disability. If they work, their income cannot exceed 8,000 euros per year.
In the case of an individual declaration, the spouses will have to divide the reduction per child into 50%.
The reduction of 3,400 euros in joint declaration?
Filing a joint tax return allows you to save money, as there is a reduction of 3,400 euros from the tax base of your family unit. If you are a single-parent family unit (separated or widowed with dependent children) the reduction will be 2,150 euros.
The deduction for personal minimum is the same as for individual tax returns: 5,151 euros per year. This amount increases to 6,069 euros if you are over 65 years old and 6,273 euros if you are over 75.
The advantage of offsetting losses on a joint return?
Another advantage of joint taxation is that it allows for offsetting capital losses and general negative taxable bases, incurred and not offset by the taxpayers that make up the family unit in previous tax periods in which they have paid taxes individually, such as capital losses incurred from selling property, shares or investment fund units.
In this case, if the family unit has losses and gains that can be offset, it is best to file a joint tax return. In the case of losses of both spouses or gains, it is best to opt for an individual tax return.
If you want us to study your case, you just have to contact us. contact with our tax experts, and you will save time and money, as we will advise you on what best suits you to pay less to the treasury based on your personal situation.
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