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Split Income - Reduce Tax
One of the simplest income splitting techniques for married and common-law couples is to make sure that groceries, mortgage or rent payments, credit card bills and all other daily living expenses are paid by the higher income-earning spouse. This will allow the lower-income spouse to maintain a larger investment base for earning future income that is taxed at a lower rate. If you use this technique, you and your spouse should have separate bank accounts into which you deposit your income. Using separate accounts will allow you to keep records to show that the earnings of the higher income spouse were used to pay the expenses.
Click HERE for more discussion on splitting income.
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