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Old 21.07.2014, 11:45
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Tax rules regarding adding a second income

My husband is the sole breadwinner in the family at this point and probably will be for the next few years at least. We just moved to Switzerland recently and are still settling in.

When we interviewed the school my children are attending, I offered to volunteer one day per week, as I used to do in the US. Last week I received an email from the school offering me a small paid job since they don't have a volunteer system set up.

So my question is, can I accept this "position" without creating serious tax consequences? In the US, when one files Married Filing Joint, all the money that is earned is reported as one number on the joint tax return. Are things different here in that regard? The school is asking for three hours per week worth of work, so we are basically just talking about shoe money, not a great deal of income.

Thanks.
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Old 21.07.2014, 11:54
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Re: Tax rules regarding adding a second income

As you are Swiss, there is no permit problem.

Assuming your husband completes an annual tax form, he/you will simply need to add your income in the 'partner's' income field.

You will also need to register and pay social contributions, unless your employer is deducting these...
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Old 21.07.2014, 12:31
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Re: Tax rules regarding adding a second income

I'm complete not an expert but one thing worth considering is the tax implications of become "dual earners" rather than "sole earner" in Comparis.

http://en.comparis.ch/steuern/quelle...r/default.aspx

I know when i looked at impact of my wife getting a job, it worked out that a higher proportion of her pay was going to the tax man than mine.

Of course, that may not be a good reason to not take up this job, but worth knowing for planning purposes at least.

There might also be an impact on accident insurance if you're working more than 8 hours per week but someone should confirm that...
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Old 21.07.2014, 12:36
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Re: Tax rules regarding adding a second income

There is a certain limit of earnings before one needs to declare it for tax purposes. I`m not sure what that limit is, something like +- Sfr2600 per year (?)
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Old 21.07.2014, 13:41
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Re: Tax rules regarding adding a second income

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My husband is the sole breadwinner in the family at this point and probably will be for the next few years at least. We just moved to Switzerland recently and are still settling in.

When we interviewed the school my children are attending, I offered to volunteer one day per week, as I used to do in the US. Last week I received an email from the school offering me a small paid job since they don't have a volunteer system set up.

So my question is, can I accept this "position" without creating serious tax consequences? In the US, when one files Married Filing Joint, all the money that is earned is reported as one number on the joint tax return. Are things different here in that regard? The school is asking for three hours per week worth of work, so we are basically just talking about shoe money, not a great deal of income.

Thanks.
No there is no tax penalty in Switzerland, in the way there is in the USA (filing seperately, jointly etc). So you should not worry about messing up your husbands taxes. That is, the Swiss taxes. I am not sure how your american tax affairs will be affected..


However, if you start working (and I assume you are taxed at source for the moment, as newcomers), you will expect to pay a higher percentage in tax than your husband does. The reason is because the tax-free allowances (eg for children, etc) are calculated per family, but are only given to one of the two (husband or wife, usually the one with the highest income). So basically, at the moment your husband gets all the allowances for both of you, and so when you start working you will be taxed at a higher rate as you will get no allowances - your husband gets all of them already. You can ask the tax authorities to swap them, ie, tell them that you would like to receive all the tax benefits instead of your husband, but this changes nothing at the end of the day. In any case, if you only work a few hours a week, your taxes are going to be very small anyway.
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Old 21.07.2014, 14:11
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Re: Tax rules regarding adding a second income

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However, if you start working (and I assume you are taxed at source for the moment, as newcomers), you will expect to pay a higher percentage in tax than your husband does. The reason is because the tax-free allowances (eg for children, etc) are calculated per family, but are only given to one of the two (husband or wife, usually the one with the highest income).
She is Swiss. So no tax at source but full declaration.

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There is a certain limit of earnings before one needs to declare it for tax purposes. I`m not sure what that limit is, something like +- Sfr2600 per year (?)
You still have to declare but you can detuct a total of at least CHF 3200 = CHF 2000 (work expenses) + CHF 700 (bicylce) + CHF 500 (continuing education)
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