When two people decide to legally unite by getting married or entering into a Civil Solidarity Pact (PACS), they not only share their lives, but also their financial responsibilities. One of these unavoidable responsibilities is filing taxes, a complex and often dreaded process that requires a thorough understanding of current tax rules. Whether you are recently married, about to enter into a PACS, or simply curious about the tax implications of these statuses, this exploration will provide you with essential insight to navigate the sometimes tumultuous waters of marital taxation in France.
⋙ Find out everything you need to know to do your tax return correctly!
How to complete your tax return while married, in a civil partnership or cohabiting?
If you are married, you can choose between joint declaration (joint taxation) or separate declaration (separate taxation). The choice depends on your financial and tax situation, so it is recommended to compare the two options to determine which one suits you best.
In the case of PACS, there is also the possibility of choosing between a joint or separate declaration, but the tax rules for civil partners are different from those for married couples. Make sure you understand the specific tax implications of PACS.
If you are cohabiting, you have no choice and must complete individual tax returns.
Before you begin, gather all necessary tax documents, such as salary statements, bank statements, proof of deductible expenses, donation receipts, etc. Make sure you have all the financial information for both members of the couple. Carefully follow the instructions provided in your country’s tax return form. Correctly complete the sections relating to marital status, income, deductions, tax credits, etc. Tick the appropriate boxes to indicate your marital or civil partnership status. Make sure you choose the right one tax system if you have this option.
Knowing the tax benefits specific to your situation is essential. For example, married couples can benefit from a tax reduction, while civil partners have specific rules for revenue sharing.
How to complete your tax return together when your situation has changed?
In the event of marriage or conclusion of a Civil Solidarity Pact (PACS) the previous year (N-1), it is necessary to submit a single income tax return for all income received by the couple during this year N-1.
If you choose to report your income online, one spouse can log in to the online reporting service and report the change of situation by answering the following question: “Would you like to report a marriage, divorce, death or any event relating to a PACS for year N-1?” You will then need to provide the surnames, first names and tax numbers of your spouse, as well as the date of the event. The joint declaration will then be presented to you on the screen, which you can check, modify or complete if necessary. Once validated, no further action will be required.
If you have already declared your marriage or PACS in your Personal Space, section “Manage my withholding tax“, this information will automatically be taken into account in your online declaration, and you will simply have to confirm it when completing your declaration.
If you do not wish to use the online declaration, one of the spouses can use the pre-identified forms that you received by post. You will then need to complete the marital status of your spouse and the date of the event in theinsert A of the declaration, as well as report your personal income in the appropriate boxes. You will not need to attach the other spouse’s return that was not used.
How to complete your tax return separately?
If you wish, you also have the possibility of opting for separate taxation of your income for year N-1. In this case, two separate declarations must be filed.
If you choose to declare your income online, one of the spouses must indicate the marriage or civil partnership at the start of the declaration, specifying the date and the tax number of their spouse, then choose the option “complete an individual declaration“. Once this individual declaration has been validated, the second spouse must in turn connect to the online declaration service, where they will be informed of the marriage or PACS reported by the other spouse. They will then have to confirm it in order to enter their own online declaration.
If you do not declare your income online, each use the declarations “paper“received by post and check box B”you opt for the separate declaration of your 2022 income” in box A of the declaration. Don’t forget to indicate your spouse’s tax number.
The government website also recalls: “the option for separate taxation of your income is only valid for the year of declaration of the marriage or civil partnership. You will therefore have to subscribe to a joint declaration for the following years. Likewise, this option is not possible when moving from a PACS to a marriage“.
What are the exceptions?
Individuals living in a common law union, spouses married under the separation of property who do not live together; Spouses separated without divorce, provided they have separate incomes and do not share the same residence must file a separate declaration.
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