Why might individual assessment for spouses be beneficial in the case of wage replacement benefits?
If only one spouse receives wage or income replacement benefits, while the partner has only taxable income, it may be beneficial to choose individual assessment for spouses instead of joint assessment.
With wage replacement benefits, the tax rate for the taxable income would increase in a joint assessment, which would also increase the amount of tax both spouses have to pay.
In the case of individual assessment for spouses, both spouses are considered separately for tax purposes, so the progression clause does not affect the spouse who does not receive tax-free wage replacement benefits. You should definitely calculate this option, even if the favourable splitting rate for joint assessment is no longer applicable in this case.
