Tip | Pay off the partner alimony this year!
Tax tip 4
Buying off (a part) of the partner alimony to be paid can be fiscally advantageous if you know that you will earn a lot less next year.
Be aware: the decrease in income must be big enough to move from tax bracket 2 to tax bracket 1. Here, you can read how the tax brackets work.
Will your income indeed decrease to such an extend? Then, it is fiscally advantageous to buy off (a part of) the partner alimony. But how exactly does this work? The partner maintenance to be paid forms a deductible item in box 1. This means it reduces your taxable income.
- In 2020, the tax tariff is 37.35% on income up to € 68,508
- In 2020, the tax tariff is 49.5% on income above € 68,508
- Deductible items are deductible in 2020 at a rate maximum of 46%
If your income is taxed in bracket 2, the partner alimony to be paid is deductible at the maximum deduction rate of 46%. Do you choose not to buy off the partner maintenance and pay this in 2021 (when your income has decreased)? Then, the partner alimony is only deductible at 37.10% (rate of tax bracket 1 in 2021). Therefore, it is tax advantageous to take this into account if you have to pay partner alimony.
In addition, buying off partner alimony can be fiscally advantageous if it causes you to fall just below the tax-free rate on the 1st of January. This prevents you from having to pay tax on your savings.
Of course, buying off partner alimony must be done in consultation with your ex-partner. This way, you prevent disagreements.
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