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Sharing unused tax incentives with the spouse

Spouses cannot submit a traditional joint income tax return any more. However, there is a possibility to transfer one’s unused tax incentives into the spouse’s tax return.

The following may be transferred:

  • the unused part of the basic exemption of up to 2160 euros,

  • the unused part of the housing loan interests,

  • the unused part of the training expenses,

  • the unused part of the basic exemption for the children.

The basic exemption may be shared in the condition only if one spouse did not receive any income during the period of taxation or his/her income was less than 2160 euros. However, he/she may transfer the unused part of the basic exemption to his/her spouse if the total annual income of the spouses does not exceed 50,400 euros in a calendar year. The maximum transferable amount may be 2160 euros.

Upon transferring the amount exceeding the taxable income of the housing loan interests and training expenses into the spouse’s tax return, the same limits than for individual tax returns shall apply: the maximum amount per one tax return to be deducted is 1200 euros wherefrom the part of the housing loan interest may be with a maximum of 300 euros.

Example 1

The annual income of spouse A is 51,000 euros, the annual income of spouse B is 500 euros.
Whereas the total annual income of the spouses exceeds 50,400 euros, then spouse A cannot use the part of the basic exemption of the spouse that remains unused (2160 – 500 = 1660 euros).

Example 2

The annual income of spouse A is 30,000 euros, the annual income of spouse B is 1000 euros.
Whereas the total annual income of the spouses is 31,000 euros (less than 50,400 euros), then spouse A may use the basic exemption of spouse B which remained unused – 1160 euros (2160 – 1000 = 1160).

Example 3

The annual income of spouse A is 49,000 euros, the annual income of spouse B is 1000 euros.
The total annual income of the spouses is 50,000 euros (less than 50,400 euros). Although a part of the basic exemption of 1160 euros remains unused by spouse B (2160 – 1000 = 1160), then spouse A may use from this only 400 euros or the part that falls short of the limit of 50,400 euros (49,000 + 1000 = 50,000).

Example 4

The annual income of spouse A is 47,000 euros, the annual income of spouse B is 1420 euros.
The total annual income of the spouses is 48,420 euros. The part of the basic exemption that remains unused by spouse B is 740 euros (2160 – 1420 = 740) may be entirely used by spouse A.

Transfer of tax incentives in an electronic tax return

  • We recommend to submit first a tax return of the spouse whose annual income is less or who has more incentives to be deducted.

  • The system offers the transfer of the unused basic exemption, increased basic exemption for the children, housing loan interest and training expenses into the spouse’s tax return automatically. Nothing shall be indicated in a tax return by hand.

  • If a person has no unused tax incentives, then the system does not offer any transfer possibility either.
     

16.01.2020