What Filipino Couples Need to Know After Saying ‘I Do’
You’ve exchanged vows, cut the cake, and danced the night away. But before you ride off into the sunset as a happily married couple, there are a few tax changes you need to be aware of as Filipino citizens. Don’t worry, we’ve got you covered! Here’s a Buzzfeed-style guide to the tax changes that await you after saying “I do.” Get ready to navigate the exciting world of taxes together!
The Filing Status: “To File Jointly or Separately, That Is the Question!”
Once you tie the knot, you have the option to choose your filing status for tax purposes. Here are your choices:
a. Married Filing Jointly: This option lets you and your spouse file a single tax return, combining your incomes, deductions, and credits. It’s like a joint bank account but for taxes!
b. Married Filing Separately: If you prefer to keep your financial affairs separate or if one of you has significant deductions or credits, you can file individual tax returns. It’s like maintaining separate bank accounts but for taxes!
Tax Rates and Income Thresholds: “Money Talks, Tax Rates Listen!”
Now that you’re married, your combined income may push you into a different tax bracket. The Philippine tax system uses progressive tax rates, which means higher income may be subject to higher tax rates. So, make sure to check the latest tax tables provided by the BIR to know where you stand.
Deductions and Exemptions: “Money-Saving Secrets for Married Couples!”
Marriage comes with a few financial perks in the tax world. Take advantage of these deductions and exemptions:
a. Additional Exemptions: As a married couple, you can claim an extra personal exemption for your spouse and qualified dependents. Hello, tax savings!
b. Medical and Health Insurance Premiums: If you or your spouse pays for medical or health insurance, you may be eligible for deductions. Keep those receipts handy!
c. Home Mortgage Interest: Got a joint housing loan with your sweetheart? You might qualify for deductions on the interest paid. Cha-ching!
Estate and Donor’s Taxes: “Happily Ever After, and Taxes That Live On”
When it comes to estate and donor’s taxes, your marital status can influence the applicable tax rates and exemptions. It’s wise to familiarize yourself with the latest regulations and consult professionals in the field. After all, it’s better to be prepared for the unexpected.
As you embark on this exciting journey together, don’t forget to navigate the world of taxes hand in hand. Consider your filing status, stay updated on tax rates and thresholds, take advantage of deductions and exemptions, and be aware of estate and donor’s tax implications. Remember to consult reputable sources like the official BIR website (www.bir.gov.ph)