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Income Tax - Family Quotient of Married or Paid Couples

Verified 08 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)

A married or married couple subject to common taxation is entitled to 2 family quotient shares. Dependants (child, disabled person) are entitled to additional shares. The same is true in some situations (veteran, disability). However, a capping mechanism may limit the tax reduction associated with the application of the family quotient.

If you are a married or married couple subject to common taxation, you are entitled to 2 shares of family quotient.

You are entitled to a share increase if you have dependent children (minor or single major):

  • 1 half share for each of the first 2 dependent children
  • 1 whole from 3e

In the case of a dependent child residing alternately at the home of each parent (in the case of separation or divorce), the benefit of family quotient is divided between the 2 parents.

Number of shares of family quotient for a couple subject to joint declaration

Child(s)

Number of shares

0

2

3

2.5

2

3

3

4

4

5

Per additional child

3

You are also entitled to a half share increase for each dependant who has Mobility Inclusion card (CMI) marked "invalidity". This could be your child or any other person, under certain conditions.

One spouse/partner is invalid

You get an extra half share if one of you is in one of the following 2 situations:

  • Included mobility card with the invalidity
  • Pension (military or work-related accident) for at least 40%

If you meet all 2 conditions, you get an extra share.

One of the spouses/partners is a veteran

You get an extra half share if one of you meets the following 2 conditions:

  • Over 74 years old at 31 December 2020
  • War veteran's card or disability or war victim's pension

If you meet all 2 of these conditions, the advantage remains limited to an additional half share for the couple.

This half is not available if you or your spouse also receive the additional half for disability.

The "permitted" tax reduction, e.g. by the arrival of a child, is capped. It may not exceed a fixed amount (ceiling).

General case

The tax reduction related to family quotient is limited to:

  • €1,570 for each additional half share
  • €785 for each additional quarter share

The additional half is added to your first 2 shares if you are married or married and subject to common taxation.

Example :

  1. A couple reports taxable net income of €63,000.
    Its family quotient will be €31,500 (€63,000 ÷ 2.
    For the calculation of his tax:
    • Up to €10,084 : €0
    • From €10,085 to €25,710 : ( €25,710 - €10,085) 11% = €15,625 × 11% = €1,718.75
    • From €25,711 to €31,500 : ( €31,500 - €25,711) x 30% = €5,789 × 30% = €1,736.70.

    The gross tax is: €0 + €1,718.75 + €1,736.70 = €3,455.45.
    This tax must then be multiplied by the number of shares in the tax household. In this example, it will be multiplied by 2 since it is a couple.
    Its gross tax will therefore be €6,910.90 rounded to €6,911.
  2. The same couple has a child, the number of tax shares increases to 2.5.
    Its family quotient will be €25,200(€63,000/2,5).
    For the calculation of his tax:
    • Up to €10,084 : €0
    • From €10,085 to €25,200 : (€25,200 - €10,085) 11% = €15,115 × 11% = €1,662.65

    The gross tax is: €1,662.65, multiplied by the number of shares in the tax household, i.e. 2,5.
    Its gross tax on the couple should therefore be €4,156.62 (€1,662.65 × 2,5), rounded to €4,157.
    The child will have "reduced" the taxation of €2,754, difference between €6,911 to pay if they did not have a child and €4,157 with this one.
    However, this value is greater than €1,184 the ceiling of the €1,570 (€2,754 - €1,570).
    The couple's gross tax will therefore be €5,341 (€4,157 + €1,184).

Veteran

If the €1,570 is reached for the additional half share, a further reduction of €1,565 is applied.

The tax benefit is therefore limited to €3,135.

Invalid

If the €1,570 is reached for the additional half share, a further reduction of €1,565 is applied.

The tax benefit is therefore limited to €3,135.

To find out if you are affected by the cap, the tax department compares the results of the following 2 calculations:

  1. Tax calculated on 2 shares, reduced by the amount of the ceiling corresponding to family quotient
  2. Tax calculated on your actual shares (based on your situation and your family expenses)

If 2nd result is less than 1to, the ceiling shall apply. The amount of tax owing is 1to result.

To complete or verify your pre-completed joint return, you can review the following documents:

You must complete or amend the pre-completed tax return if your situation changed in 2020.

Depending on what is most advantageous for you, the family situation to remember is either the one at 1to January, that is, December 31 of the taxation year.