Many people now live together. Whether it's with friends, parents, children or with your partner, living together can have an effect on what you have to pay in tax. In some cases, when you start living together, you are suddenly tax partners of each other and you may have to pay hundreds to thousands of euros less or even get a refund. But what exactly is tax partnership and what are the advantages and disadvantages? We'll tell you more about that here!
Tax partner, what does that mean?
Tax partnership means that you are seen as tax partners and that you file tax returns together. The reason for this is because in a relationship it is not always clear who exactly earns and spends what. The tax authorities therefore give you the opportunity to declare this yourself and to shift income and deductible items. This can be beneficial, but it can also cost money. That is why it is important that you know for sure whether or not you are each other's tax partners.
When is there a tax partnership?
If you are married or registered partner, it is not that difficult. Just like with a cohabitation contract, you are each other's tax partners. Even if you are not registered at the same address.
But what if you are not married, do not have a cohabitation contract and are not registered as partners? Then you may also be tax partners. For example, when you:
– Are registered at the same address and have a child together or the child has been recognized by the other partner.
– Is registered at the same address and one of you has a minor child at the same address is registered.
– You are registered at the same address and are included in each other's pension scheme.
– You are registered at the same address and you jointly own a home.
– You are registered at the same address and have been tax partners in the previous year.
Only a joint account therefore does not immediately mean that you are also each other's tax partners. Even if you are registered with housemates at the same address and are not connected to them in any other way, you are almost certainly not each other's tax partners. If you are not sure, you can do a short test via the consumer association.
How do I become a tax partner?
Becoming a tax partner can be done in different ways, but is intended for partners where income and expenditure are often joint. It may therefore be that it is not important or applicable in your situation. You become a tax partner when:
– You get married.
– You enter into a registered partnership.
– You live (or will live) at the same address and conclude a notarial cohabitation contract.
– You live (or will live) at the same address and buy a house together.
– You live (or will live) at the same address and have a child together.
– You at the same address lives (or will live) and the child of your partner will be acknowledged.
– You will live with your partner who has a minor child or your partner will move in with you with a minor child.
The benefits of tax partnership?
As a tax partner, you file your tax return together. This allows you to divide deductible items, income and assets among yourselves. In short, classify the tax return in such a way that it yields a tax advantage for you! If the partner with the highest income declares the deductible items, this is equal at the highest rate. Then you get more money back than if you declare the deductible items with the partner with the lowest income.
What are the disadvantages of tax partnership?
In some cases, tax partnership can be less beneficial. For example, when benefits are paid up to a maximum income. How do you know what is most beneficial for you? You can make use of an adviser, but you can also complete the declaration yourself in various ways. You then send the most advantageous one to the tax authorities.
When you start living together, you are therefore not immediately a tax partner, but sometimes you are. It is therefore important that you take a good look at your own situation. Want to know what else to think about when you move in together? View the complete checklist of cohabitation.
