As I know changes have to be made before end March I am wondering if there is an advantage to changing from separate to joint in following scenario:
Married couple, one paye and one self employed, paye worker on lower rate of tax, self employed person (small home based business in craft area) up to now was making enough to use up their own tax credits (It was just simpler to keep them separate over the years when submitting Form 11)
However now the self employed person who had 2 streams of income from two small businesses, totally lost one during Covid and worked on improving the second one and will not be restarting the original, now here is the question, the second and now only source of income has an Artist's Exemption for tax so there will be no tax on it to use up any credits.
In this case so what if any credits/allowances could they transfer to spouse if jointly assessed? They get the personal credit and were getting the earned income credit up to now but the year 2022 return will have no taxable income for the self employed person.
2021 Form 11 due this year will have combination of PUP/art income (very small)
Married couple, one paye and one self employed, paye worker on lower rate of tax, self employed person (small home based business in craft area) up to now was making enough to use up their own tax credits (It was just simpler to keep them separate over the years when submitting Form 11)
However now the self employed person who had 2 streams of income from two small businesses, totally lost one during Covid and worked on improving the second one and will not be restarting the original, now here is the question, the second and now only source of income has an Artist's Exemption for tax so there will be no tax on it to use up any credits.
In this case so what if any credits/allowances could they transfer to spouse if jointly assessed? They get the personal credit and were getting the earned income credit up to now but the year 2022 return will have no taxable income for the self employed person.
2021 Form 11 due this year will have combination of PUP/art income (very small)