Should married couples pay their taxes individually or jointly?
The annual tax filing season is quickly approaching. Employees must file their tax returns by April 30, and business owners must file by June 30. As a married person, you have the option of filing your taxes separately or jointly, so how is it more cost-effective for a married person to file their taxes?
If both husband and wife work, it is more advantageous to suggest that you file your taxes separately. If you file separate tax returns, you can get two personal exemptions of RM 9,000, for a total exemption of RM 18,000.
Filing taxes jointly is limited to a total exemption of RM13,000, which includes an individual exemption of RM9,000 and an exemption for partners of RM4,000.
If one of the couples does not work or has a low income, they can file taxes jointly. If you file a tax return together, you can only get an RM9,000 one-time exemption and an RM4,000 partner exemption, for a total of RM13,000 in exemption. Where the chargeable income is less than RM35,000, an additional RM400 rebate is available.
Married couples must consider other tax relief items in addition to deciding whether to file tax returns separately or jointly. For example, sending children to nursery schools can result in an RM3,000 tax break. In addition, children under the age of 18 are eligible for an RM2,000 tax deduction.
Simply put, if the spouse’s income is low, they should choose to file taxes jointly.