Sunday, 17 May 2009

No benefits to marriage. Except being married.

I'm married. Congratulate me. Because there are no financial breaks for being married. At least not currently in the New Zealand tax system.

If I had a couple of kids under 18 years old, I could qualify for "Working for Families Tax Credits"; I would be part of a family!

But no, I am only a worker bee married to another worker bee. We don't qualify for any special status at all.

In fact, because we have a joint bank account, the account is taxed at the main incomer earner's
tax-rate: 33%. And, the annual statement of earnings from the bank has this higher tax-rate. Which means I'm confuzzled about what my earnings are because before 1 April 2009 I was on 33% tax-rate but there's been changes and now I'm at 21% (I think).

I could be eligible for
Independent Earner Tax Credit...iffen I figure out how the taxing of joint bank account works. I may be better off being single.

But no, I love husband. And I'm married for life, not for financial tax breaks.

Curiously enough, one of the main topics that come up during a search on the topic is Family Trusts. Some cursory research suggests it costs a few thousand dollars each year to maintain the trust -- so you gotta have money to save you money.
[edited 20 May 09]

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