Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 17.08.2021, 21:48
Member
 
Join Date: Jun 2009
Location: Vaud
Posts: 120
Groaned at 16 Times in 7 Posts
Thanked 6 Times in 5 Posts
2funky is considered unworthy2funky is considered unworthy2funky is considered unworthy
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!
Reply With Quote
  #2  
Old 17.08.2021, 23:42
swisspea's Avatar
Forum Legend
 
Join Date: May 2008
Location: From one side of lake Zurich t
Posts: 6,294
Groaned at 39 Times in 29 Posts
Thanked 6,370 Times in 2,929 Posts
swisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond repute
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...
Reply With Quote
This user would like to thank swisspea for this useful post:
  #3  
Old 18.08.2021, 07:36
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 31,918
Groaned at 2,390 Times in 1,738 Posts
Thanked 38,865 Times in 18,320 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Taxation in shared custody - Canton VAUD

Quote:
View Post
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
Reply With Quote
The following 2 users would like to thank st2lemans for this useful post:
  #4  
Old 26.08.2021, 08:49
Member
 
Join Date: Jun 2009
Location: Vaud
Posts: 120
Groaned at 16 Times in 7 Posts
Thanked 6 Times in 5 Posts
2funky is considered unworthy2funky is considered unworthy2funky is considered unworthy
Re: Taxation in shared custody - Canton VAUD

Quote:
View Post
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.

Last edited by 2funky; 26.08.2021 at 09:02.
Reply With Quote
  #5  
Old 26.08.2021, 10:53
Forum Legend
 
Join Date: Oct 2014
Location: Nyon
Posts: 5,375
Groaned at 300 Times in 213 Posts
Thanked 7,330 Times in 3,441 Posts
bowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond repute
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.
Reply With Quote
This user would like to thank bowlie for this useful post:
Reply

Tags
divorce advice, vaudtax




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Car taxation >> Hybrids. Canton Vaud geneve78 Finance/banking/taxation 4 28.01.2020 13:58
New to canton Vaud swissjim01 Introductions 13 17.06.2014 16:16
Custody lawyer in Canton Vaud sache Family matters/health 0 26.12.2013 14:17
Canton of Vaud or Fribourg? mmhMuffins Housing in general 4 07.09.2010 17:43
buying a used car in Vaud canton vladimir Transportation/driving 6 10.11.2007 00:26


All times are GMT +2. The time now is 10:47.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0