Relationship Separations and Tax Returns

Relationship Separations and Tax Returns

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Sometimes relationships breakdown and whilst you might have each gone your seperate ways when it comes to tax time the question of spouses and dependants will crop up in your tax return to determine your Medicare levy reductions, Medicare levy surcharge (MLS) and private health insurance rebates.

If you had a spouse (married or defacto relationship) and were together for any period of the tax return period you’ll need to complete the section on ‘Spouse details’. You’ll need to include the date you separated from your spouse and provide the ATO with details about their income during the financial year.

If you have any children, they are considered dependants in your tax return if for the period you:

  • had a spouse or a child (under 21 years old or 21 to 24 years old and studying full-time at school, college or university)
  • who was an Australian resident (regardless of their income), and
  • contributed to their maintenance. Your child is still your dependant if you are paying child support even if they don’t live with you.

If you need any help with your tax return don’t hesitate to get in contact with us at STS Accounting.