Benefits or tax breaks from co-habiting couple

dohda

Hi All,

Just a quick question as I am not sure if I am getting the run around from the tax office or not. I live with my girlfriend and have a two year old daughter. The closest family is a 90 minute drive away. At the moment I am working but my partner is not. She did attempt to go back to work but it was costing us 150 euro a month as the expense of her working (creche, petrol, lunches, etc) was higher than the income.
At the moment I receive no tex relief on the mortgage from my partner nor can I take any of her tax free allowance. In fact, I recieve no benefits other than what I would get living on my own and had no child. My partner receives a social welfare payment at the moment but if I am not mistaken she could run out of her stamps at any time.

My question is are we entiltled to anything? I am getting very concerned over keeping up the mortgage payments if she looses the social welfare payment.

echosound

I assume you are getting child benefit and the early childcare payment? If not, get this sorted ASAP, I think it's around 160 a month for the CB, and around 250 each quarter for the early childcare payment. Could help a little.

You will not be able to claim any of your GF's tax free allowances etc unless you get married. Social welfare will assess you jointly as a couple, revenue/tax office will not (the theory is that a married family is held in "higher" regard by the constitution, so an unmarried couple won't be placed on a par with a married couple in the eyes of revenue, wheras SW will assess you jointly as a commonlaw husband and wife). If her stamps run out, she will have to prove she is looking for work to get jobseeker's allowance, and your income will be assessed as means if she does this. To claim anyJB/JA you have to prove you are actively seeking work.

You may be able to claim family income supplement - details here

dohda

Thanks for the reply. Yes we get the child benefit and the early child care benefit. Even with these payments it in no way offsets how much it costs to have my partner go back to work. It is a ridiculous situation to be in were we cannot afford for her to be in employment! We do plan on getting married but as with everything that costs money putting this together will take time.

I am curious though, if she runs out of stamps and is receiving job seekers allowance ( I take it that's the dole?) does she have to take whatever job she gets regardless of how little it pays? If this is the case how do soem people manage to stay on the dole for years? If we were married does she qualify for a home carers allowance instread? Also, if I was able to take her tax credits woudl this home carers benefit be on top of her usual credits or instead of?

Sorry I'm not too up on all this stuff. The answers are probably very straght forward.

echosound

dohda wrote: »

Thanks for the reply. Yes we get the child benefit and the early child care benefit. Even with these payments it in no way offsets how much it costs to have my partner go back to work. It is a ridiculous situation to be in were we cannot afford for her to be in employment! We do plan on getting married but as with everything that costs money putting this together will take time.

I am curious though, if she runs out of stamps and is receiving job seekers allowance ( I take it that's the dole?) does she have to take whatever job she gets regardless of how little it pays? If this is the case how do soem people manage to stay on the dole for years? If we were married does she qualify for a home carers allowance instread? Also, if I was able to take her tax credits woudl this home carers benefit be on top of her usual credits or instead of?

Sorry I'm not too up on all this stuff. The answers are probably very straght forward.

Ok, Take what I say with a pinch of salt as it's been a while since I read up on these things, but that site I linked is very good and if you do a search there it should throw up a few pointers, also check out revenue.ie for answers to your tax questions.

From my understanding, JB or JA (both are loosely called "the dole") can only be paid if your GF is actually genuinely seeking employment, she is running the risk of making a fraudulent claim if she doesn't intend on looking for work. Naturally they won't make her take any job regardless of what it is, but she has to be looking for work "within reason" - eg she's not holding out for a highly specialised job like state coroner or taoiseach or something , and is willing to look at work within her scope (eg she might have a degree in business but may have to be willing to work in a lower scale clerical/admin/reception position until she gets a better job).

From what I understand, you both would prefer to have one stay at home parent with your daughter, and it's not worth it for you both to be working due to creche fees. I'm sorry to say but it looks like you will have to take it on the chin so,and live off one wage, as JB and JA are only payable if your GF is actually looking for work. Could your GF work part time perhaps?A little extra income, but less outgoings for childminding? I know it's hard, but most families with one stay at home parent has to get by on one wage as it's a choice they make (albeit often one that is a no-brainer as it can cost more to have both parents working, which is a sad state of affairs that there are little supports there for parents).

Look into FIS, as you may be entitled to something from that, especially if you're getting by on one wage.

Also look into a medical card, you may fall under the limits, or qualify for a GP only card, which would be a help anyway. If you were to get married, your (then) wife could claim the homemakers tax credit (which would be given to you) and could also transfer her tax free allowances to you too. Until then, I'm afraid you're stuck regarding the tax issue.

If money is the only thing stopping you from getting married, don't let it be. All that a wedding actually costs is €150, that covers a legal marriage in a registry office, and if you want the big day with all the trimmings, why not quietly go and get married with two random witnesses, save up and have the big day out for the family at a later stage? I'm not suggesting you get married just to avail of the tax breaks, just to put it in perspective that you don't need 30k + to have a wedding.

Many of my friends (myself and my husband included) went the civil ceremony route, some with 60-100 guests, some with just themselves and two strangers pulled in off the street to witness the ceremony and sign the register. Could be an option if money is the only thing stopping you?

Anyway, hope the above was of some help. Things seem to be getting harder and harder nowadays for normal people to stay afloat!

dohda

Thanks for that. I will look into the medical card info after work. It is scary that having two parents working could generate a loss. What is the incentive for having a family?

As far as the wedding goes there might not be another alternative. Civil wedding now before the social runs out to make life easier followed by a proper (but still very small) wedding in a few years once things get a little easier. I dont think either my partner or myself would be inclined to make fraudulent claims on the revenue, but I must say I fully understand why people in our situation often do.

Thanks a lot for the help and the replies folks. It seems the tax office was being genuine enough after all.

dohda

After reading a lot of the info off the revenue website. I still have one question which is related to the above. If we were to be married and she was claiming job seekers allowance as a suitable job had not yet cropped up can I take all the tax allowance and credits? Or are these only payable to me once she is in employment?

popebenny16

dohda wrote: »

After reading a lot of the info off the revenue website. I still have one question which is related to the above. If we were to be married and she was claiming job seekers allowance as a suitable job had not yet cropped up can I take all the tax allowance and credits? Or are these only payable to me once she is in employment?

Good question, if she is working, and she decides not to claim her credits you can do it, but as she is not working, I dont think you can. Ring the PAYE helpline and they'll tell you, dont bother with the website.