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-   -   Taxation in shared custody - Canton VAUD (https://www.englishforum.ch/finance-banking-taxation/305449-taxation-shared-custody-canton-vaud.html)

2funky 17.08.2021 21:48

Taxation in shared custody - Canton VAUD
 
Hi,

Doing my first tax return as separated with shared custody (50% of time for 2 kids), i encountered something which i think rather odd.

I currently pay alimony to my wife and also money for the kids (who stay half time with me and half time with her). Fine so far.

Problem is that, in canton Vaud, there is a law that says that if you pay alimony to your ex-wife, you cannot deduct anything for the costs of kids while they stay at my place and - even worse - the family coefficient (quotient familiale) is 1 (and not 1.5 like it should be with 2 kids): basically they consider me as single and they tax me as single, even if i have kids for 50% of time!!!

I was thinking to do some simulation with VaudTax to check if it is more convenient to declare any alimony to my wife or not. By being considered with coefficient 1.5, things should change quite a bit.

We haven't done yet the convention with the judge, so in theory we could find the most efficient tax situation for both.

Any ideas on this or who could help me assess the situation?

Thanks! :msnsick:

swisspea 17.08.2021 23:42

Re: Taxation in shared custody - Canton VAUD
 
I'm not sure if this helps but two separated people being taxed at 1: each will make the income lower - you typically would pay less tax than if you were married... because the tax system is 'tiered' - when not paying 'household' tax you both get taxed at a lower rate.


So yes, it's certainly worth looking at carefully, but ultimately I am not sure that you will pay 'more' tax...



I am not sure if the alimony is taxed on your side or hers - it may be simply that the alimony is taxed on your side, but not on her side... I am sure it won't be taxed twice.... eg. money paid from one spouse to the other for the maintenance of children is not counted as 'income' for tax purposes, is it ?


I'm also not sure what 'deductions' you can claim for kids - I'm curious -


It's not clear, however, if you are paying any alimony - unless your wife earns more than you, you probably should be - even in a 50/50 arrangement, the spousal maintenance payment is separate to the one you pay for your kids....


Also, who is getting the 'kinderzulagen' - child benefit ? This is usually only paid once to one parent, typically the father as he is normally earning more.... that's given to you pre-tax by your employer but is a benefit that counts as well...

st2lemans 18.08.2021 07:36

Re: Taxation in shared custody - Canton VAUD
 
Quote:

Originally Posted by swisspea (Post 3339047)
eg. money paid from one spouse to the other for the maintenance of children is not counted as 'income' for tax purposes, is it ?

It's a deduction from your income for you, and taxable income for the ex.

Tom

2funky 26.08.2021 08:49

Re: Taxation in shared custody - Canton VAUD
 
Quote:

Originally Posted by swisspea (Post 3339047)
I'm not sure if this helps but two separated people being taxed at 1: each will make the income lower - you typically would pay less tax than if you were married... because the tax system is 'tiered' - when not paying 'household' tax you both get taxed at a lower rate.

They told me that once kids are 18 y. old, I can claim 1.25 as tax coefficient. Why shouldn't I be able to claim that also now, view and considered I have them 50% of time?

Changing this coefficient, changes a lot!

I still think there is a mistake of not being possible to claim a tax coefficient of 1.something, where this "something" should be shared with my ex, as we maintain the 50% custody of the kids.

By the fact I pay her alimony (as I earn more), than I am penalized like she would take care of the kids at 100%, and my coefficient is just 1.

I guess this approach is another flavour of bad heritage of the inequality of women VS men that still exists in Switzerland where women are considered the default parent that manages households.

I would be curious to go to the tax office and ask which law do they use to define this calculation.

bowlie 26.08.2021 10:53

Re: Taxation in shared custody - Canton VAUD
 
Find an experienced fiduciary and discuss it with them. You could ask them to do this one, which you can copy from in the future.

Or contact the tax people and discuss it with them. In Nyon their office is in the La Combe building.


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