What are the tax implications of getting married?
December 1, 2022 | 40,00 EUR | answered by Anna Richter
Dear tax lawyer,
My name is Ammelie Götzinger and I am planning to get married in the near future. I have heard that marriage can also have tax implications and I am therefore somewhat concerned about how this will affect my financial situation.
Currently, I am single and have my own income which I have to pay taxes on. My future spouse also has their own income. We are unsure whether we should opt for joint taxation after the wedding or if it would be better to file separately.
My concern is that marriage could potentially result in higher taxes for us. I wonder if there are any tax advantages to filing separately or if it would be better to file jointly.
Furthermore, I would like to know if there are any other tax aspects that could change as a result of marriage, such as tax benefits for couples or potential tax disadvantages.
Can you please explain to me what tax implications marriage could have and what tax advantages or disadvantages there may be for us as a married couple? Are there possibly any tax planning options to optimize our tax burden?
Thank you in advance for your assistance.
Sincerely,
Ammelie Götzinger
Dear Mrs. Götzinger,
Thank you for your inquiry regarding the tax implications of marriage. As a tax attorney, I can assist you and explain the various options you have in terms of joint filing.
In Germany, couples have the option to file their taxes jointly or separately. Joint filing involves combining the incomes of both spouses and being taxed together. Separate filing, on the other hand, considers and taxes the incomes of each spouse individually.
In most cases, it can be advantageous to file jointly as this often results in a lower tax burden. This is because married couples in Germany enjoy various tax benefits, such as the so-called spouse splitting rate. This involves halving the couple's total income and individually taxing each spouse, often leading to a lower tax burden.
However, there are also cases where it may be more beneficial to file separately, for example, if one spouse has significantly higher income than the other or if high exceptional expenses can be claimed.
It is important to note that once a filing option is chosen, it is generally binding for the entire calendar year and cannot be changed. Therefore, it is advisable to analyze the individual situation with a tax advisor or attorney before marriage and choose the best filing option.
In addition to the tax benefits of marriage, there are other tax aspects that can change, such as the ability to claim child tax credits jointly or tax benefits for using property as a couple.
Overall, there are many tax planning opportunities to optimize your tax burden as a couple. I recommend contacting a tax advisor or attorney to discuss your individual situation and choose the best filing option for you.
I hope this information has been helpful, and I am available to assist you further if you have any questions.
Sincerely,
Anna Richter
