Joint ITR Filed by Husband and Wife

April 26, 1960 BIR RULING NO. 216-60 Mrs. Asuncion O. Ribu c/o Sta. Clara Lumber Co., Inc. 2501 Tecson, Manila M a d a m : In your letter dated March 11, 1960, you stated the following: "1. My husband and I are employed with Sta. Clara Lumber Co., Inc., with a joint income of P4,871.95 for the year 1959. This amount we do not expect to increase to more than P5,000.00; cdll "2. We have four children below 23 years old, giving us a total exemption of P7,000.00; "3. I have two children below 23 years old by my first marriage. They could not be claimed by my husband as exemptions inasmuch as step children are not considered under exemptions (Instruction No. 4, BIR Form No. 17.01-A); "4. Because employed wives of employed husbands are given ZERO exemptions, our Company has been deducting from my pay the amount of P2.80 every fifteenth and 30th of the month as withholding tax since January, 1960. (Per instructions and schedule from your Office) "In the light of the above facts, may I be informed whether: "1. I could claim my two children of my first marriage as my exemptions; "2. Our Accounting Office may be restrained from collecting the amount of P2.80 every pay as my withholding tax; "3. I may be allowed to file a separate Income Tax Return as an individual "HEAD OF FAMILY"; "4. Should I be allowed to claim my children by first marriage as my exemption, may I be refunded the amount already collected as may withholding tax and by whom." In answer thereto, I have the honor to inform you the following: 1. In the joint income tax return filed by you, you can claim additional exemptions for your two minor children of your first marriage who are actually living with you and are entirely dependent on you for their chief support. 2. This Office has ruled that where both husband and wife are employed in the same office, the tax to be withheld shall be determined on the aggregate income of husband and wife and giving the full benefit of the personal and additional exemptions which, otherwise, would have been allowable only to the husband. In your particular case, your combined salary is still exempt from withholding tax. With respect, however, to the amounts already collected from you as withholding tax, the same may be refunded to you automatically provided you file with your joint income tax return withholding Form No. W-2. 3. You cannot be allowed to file a separate income tax return as an individual head of family inasmuch as Section 45(d) of the National Internal Revenue Code provides that in case of married persons only one consolidated return for the taxable year shall be filed by either spouse to cover the income of both spouses. It is only in remote cases where it would be impracticable for the spouses may be allowed to file his or her separate return of income. LLjur Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue