What is the net wage for 9220s

Canton Bern To Home page

You are viewing an old version of this page. Show the current version at.

If taxable persons are married, live as a single wedlock and both are gainfully employed, they are entitled to a two-earner allowance. The amount of the deduction depends on the earnings of the spouses. Relevant earned income is wage income, income from self-employment and compensation for loss of earnings (compensation for loss of earnings is paid out as a substitute for earnings in the event of a temporary break in employment, e.g. daily allowances from military, health, accident and disability insurance). If a spouse only works for part of the year or as part-time work, this does not result in a proportionate reduction in the deduction.

If the wife or husband works in the other's business or farm without receiving wages, the two-earner deduction is permissible if the work is regular and substantial. It is considered considerable if a third party would have to be paid at least the amount of the statutory deduction. The collaboration can occur:

  • as part of the spouse's full-time self-employed activity,
  • as part of a part-time self-employed activity of the spouse (e.g. if a factory worker runs a small farm on the side, in which the current work is mainly done by the wife),
  • as part of an employed (full-time or part-time) gainful activity of the spouse; In this case, the deduction can only be granted if the spouse is contractually provided for substantial and regular participation in the professional activity and the employer is not a family corporation or family limited company (e.g. in the case of salaried caretakers, pastors).

2% of the total earned income of both spouses, up to a maximum of CHF 8,800 or 9,000 from tax year 2009. The deduction must not exceed the lower earned income (net earned income).

The 2% are calculated from the total of:

  • Net wages according to wage statements
  • Self-employed income in accordance with section 9210 of the assessment decision (after offsetting against any previous year's losses)
  • Net amounts of compensation for loss of earnings.

Limitation to the lower earned income, calculation of the net earned income of the spouse with the lower earned income:

+ Net wage according to the salary statement

+ self-employed income in accordance with section 9210 of the assessment decision for cantonal and communal taxes (after offsetting with any previous year's losses)

+ Net amount of the compensation for loss of earnings

  • Contributions to AHV, IV, EO, ALV, NBUV and pension fund that have not yet been taken into account (regular contributions and purchases to the 2nd pillar)
  • Professional costs according to Sections 6.0 to 6.6 of the assessment decision

maximum CHF 12,500.

The deduction is 50% of the lower earned income (net earned income), a minimum of CHF 7,600, a maximum of CHF 12,500. If the net earned income is less than CHF 7,600, the deduction must not exceed the amount of the net earned income. If one spouse significantly collaborates in the occupation, business or trade of the other spouse, or in the case of joint self-employment, half of the joint earned income is allocated to each spouse. A different division must be proven by the married couple.

Calculation of the net earned income of the spouse with the lower earned income:

+ Net wage according to the salary statement

+ self-employed income in accordance with section 9220 of the assessment decision for direct federal tax (after offsetting any previous year's losses)

+ Net amount of compensation for loss of earnings

  • Contributions to AHV, IV, EO, ALV, NBUV and pension fund that have not yet been taken into account (regular contributions and purchases to the 2nd pillar)
  • Professional costs in accordance with Sections 6.0 to 6.6 of the assessment ruling for direct federal tax

In the tax years 2006 and 2007, the federal deduction is CHF 7,600, but no more than the lower net earned income.

 

Back to overview top