Tax Guide for Couples: How to Save Money and Avoid Trouble

Are you in a relationship and wondering how to do your taxes? If you are married, de facto, or just dating, chances are you are a couple for tax purposes.

First, what is your relationship status?

This can affect your eligibility for tax offsets, benefits, and obligations. The ATO defines a de facto relationship as one where you live together as a couple on a genuine domestic basis.  It's not depended on whether you are married.  Or the scope of de facto goes beyond a male/female relationship and includes any permutation of that.  

If you are not sure about your relationship status, you can use the ATO's online tool to help you decide. You can also contact Gotax at anytime to get a determination. We are happy to help you sort out your love life (well, at least the tax part of it).

Second, you need to split your income and deductions fairly.

This means that you should only report your own income and claim deductions for your own expenses. You can't transfer income or deductions between you and your partner, unless you have a legal agreement or arrangement.

For example, if you receive interest from a joint bank account, you should only report half of it as your income. If you pay for an expense that is partly for your partner, such as phone or internet bills, you should only claim half of it as a tax deduction.

There are some exceptions to this rule, such as when you run a business together or have a family trust. In these cases, you may need to allocate income and deductions according to special rules. If you are not sure how to do this, we can help you figure it out.

Third, you need to avoid some common pitfalls that can get you in trouble with the ATO.

These include:

- Claiming deductions for gifts or donations to your partner. You can only claim deductions for gifts or donations to registered charities or organisations.
- Claiming deductions for personal expenses that are not related to your work or income. For example, you can't claim deductions for clothes, cosmetics, haircuts, gym memberships, or holidays with your partner.
- Under-reporting or over-reporting your income or deductions. This can result in penalties or audits from the ATO. You should always keep records and receipts of your income and expenses and report them accurately.
- Not declaring foreign income or assets. If you or your partner have income or assets overseas, such as bank accounts, shares, properties, or pensions, you may need to declare them on your tax return and pay tax on them in Australia.

Follow these tips and you can save money and avoid any trouble with your taxes as a couple. If you need more help or advice, Gotax can help you. You can use our online service to lodge your tax return easily and securely. We will check your return for accuracy and maximise your refund.

Don't let tax ruin your romance, there are a number of other things that can do that. Lodge your tax return with us today and enjoy the benefits of being a couple.

And don't forget to let Gotax guide you on your tax journey.  We're the bestest guides.