[help] Personal Income tax question

[burntan]

My wife currently not working and no income, so I only file my income tax based on my income only which is taxable. Now if my wife getting a job but the income is less than the taxable amount (e.g. 2000 per month). Will the income tax calculation based total housewhole income (my salary + my wife salary) or I can still file my own income tax separately and she file her own (which is not taxable)?

The reason I ask is, if her income is not taxable, then we are happy to have extra tax free RM2000 per month, but if her income will going to add up with my salary for taxation, then it is not worth to get the job.

TIA

[currymee]

My wife currently not working and no income, so I only file my income tax based on my income only which is taxable. Now if my wife getting a job but the income is less than the taxable amount (e.g. 2000 per month). Will the income tax calculation based total housewhole income (my salary + my wife salary) or I can still file my own income tax separately and she file her own (which is not taxable)?
The reason I ask is, if her income is not taxable, then we are happy to have extra tax free RM2000 per month, but if her income will going to add up with my salary for taxation, then it is not worth to get the job.

TIA

File your income tax separately as TWO SEPARATE INDIVIDUALS and she doesn't have to pay any taxes ... it is never worth joining unless the spouse is confirmed never to work at all

[burntan]

File your income tax separately as TWO SEPARATE INDIVIDUALS and she doesn't have to pay any taxes ... it is never worth joining unless the spouse is confirmed never to work at all

Thank you very much! The answer I hope for
BTW, what is the current highest non-taxable monthly income now?

[currymee]

Thank you very much! The answer I hope for
BTW, what is the current highest non-taxable monthly income now?

It all depends on the allowances that you are claiming, basically, I think those earning less than RM2,500 can get away without paying any taxes but you have to double-check and read up .... so no strict hard or fast rules. Just work out the maths, go to LHDN website ... basically, if possible, ALWAYS DO SEPARATE ASSESSMENTS ....

[Rhiga]

File your income tax separately as TWO SEPARATE INDIVIDUALS and she doesn't have to pay any taxes ... it is never worth joining unless the spouse is confirmed never to work at all

Bro,

You can’t be serious, right ? You are teaching someone who “got brain” and “england is betters than your” on tax-related topic ???

Funny, why someone who advocate “don’t be so square” and “there is no right and wrong” willing to pay tax…???

As mentioned by someone who "got brain and don't need expert to tell me how to think", there is always 0.1% of people who will break the law like "queue jumping” and not paying tax… as far as you don’t get caught, it is ok...

And more ironic is – as far as I know, those who sold their soul normally are rewarded handsomely – driving beamer or at least a double ring, and the wife(s) never need to work, definitely not for miserable 2k per month… The wife of these blokes normally only worry of which handbag to buy, Hermes, LV or Channel....which is definately more than rm2k per piece....

[cml]

It shows our friend has a heart of gold. Or maybe he overlooked who was the originator of the thread!!

[burntan]

It all depends on the allowances that you are claiming, basically, I think those earning less than RM2,500 can get away without paying any taxes but you have to double-check and read up .... so no strict hard or fast rules. Just work out the maths, go to LHDN website ... basically, if possible, ALWAYS DO SEPARATE ASSESSMENTS ....

Actually, my boss willing to increase my salary, but since more income will lead to more tax to pay, that's why I am thinking of instead of my boss increase my salary, must well he pay a separate salary to my wife which could be tax free. So her salary actually can be adjust freely.

[currymee]

Actually, my boss willing to increase my salary, but since more income will lead to more tax to pay, that's why I am thinking of instead of my boss increase my salary, must well he pay a separate salary to my wife which could be tax free. So her salary actually can be adjust freely.

That is called TAX EVASION AND it is ILLEGAL in the country that I live in ...

I don't condone such illegal activities nor wish to be a party to it ... have a good day

There is a parable that said ... "Pay Caesar what is Caesar's .... pay God what is God's " .... aka PAY YOUR TAXES !

[Naka]

That is called TAX EVASION AND it is ILLEGAL in the country that I live in ...

This is the answer Burntan is after

[burntan]

That is called TAX EVASION AND it is ILLEGAL in the country that I live in ...

How come, it is still 2 separate income, isn't it?

[burntan]

If choose to separate filing, then my wife can get the deduct for our children or not?

[SiangMalam]

Bro,

You can’t be serious, right ? You are teaching someone who “got brain” and “england is betters than your” on tax-related topic ???

Funny, why someone who advocate “don’t be so square” and “there is no right and wrong” willing to pay tax…???

As mentioned by someone who "got brain and don't need expert to tell me how to think", there is always 0.1% of people who will break the law like "queue jumping” and not paying tax… as far as you don’t get caught, it is ok...

And more ironic is – as far as I know, those who sold their soul normally are rewarded handsomely – driving beamer or at least a double ring, and the wife(s) never need to work, definitely not for miserable 2k per month… The wife of these blokes normally only worry of which handbag to buy, Hermes, LV or Channel....which is definately more than rm2k per piece....

Its OK lah Sagamihara-san... lets be magnanimous. My neighbor flies the MCA flag every year next to the Jalur Gemilang on August 31... I still have to tolerate his living next door lah...

[SiangMalam]

If choose to separate filing, then my wife can get the deduct for our children or not?

Read the Income Tax Act 1967 about Joint Returns and Separate Returns. A taxpayer has the option to elect any one of these 2 options. You should work out joint submissions / declaration and then do another one on separate returns submission and see which one you pay less and can claim more rebates and deductions and then opt for that option. No one can decide for you coz no one knows which bracket you are in and whether you or your wife or both have aged parents etc...

[SiangMalam]

Actually, my boss willing to increase my salary, but since more income will lead to more tax to pay, that's why I am thinking of instead of my boss increase my salary, must well he pay a separate salary to my wife which could be tax free. So her salary actually can be adjust freely.

Typical BN people... cukai pun tak mahu bayar! Tetapi mahu bawa Porsche Cayenne Magnum!

[trex92]

If choose to separate filing, then my wife can get the deduct for our children or not?

Under separate assessment, both parents are entitled for child relief so need to elect whether 50%/50% split or one parent take 100%. Rule of thumb for good tax planning is to claim child relief under the parent with higher income (ie higher tax rate bracket).

As for whether to go for separate or joint assessment, better to do a simulation tax calculations to compare differences. Joint assessment is best where your wife's Personal relief/EPF/insurances cannot be utilized to the max due to insufficient income. So under joint, the husband can make use of these excesses. Also under joint, the wife relief is claimable as well.