Need Help - tax credits when married

JD24

My sister works part time and her husband works full time.

Her standard rate band is €28,000 but she earn less than that

She wants to give her husband say €8,000 of her tax credits but she has now been advised by the Revenue that these are non-transferable credits. She was under the impression that when married you can share your credits.

Is she wrong? Is it simply a case that if he works and she doesnt he can have all her credits?

Can anyone clarify?

namenotavailablE

For 'married couples both earning', the higher earner can have the lower of €45400 or his/her income as a standard rate cut-off point (SRCOP = the amount of income on which s/he pays tax at 20%). The lower earner can have the lower of €27400 and his/her income.

Example: 1 earner on €40000 and the second on €20000. Th higher earner will have €40000 max SRCOP and the lower earner will have €20000 max. The unused part of the lower earner's SRCOP can't be transferred to the higher earner.

angelfire9

Have a look here it gives info on taxation of married persons http://www.revenue.ie/en/tax/it/leaflets/it2.html

Couples taxed under Joint Assessment can specify how they wish their tax credits and standard rate band to be allocated between them via the Internet using our PAYE Anytime service. This means you do not have to contact Revenue to have changes made. Once you confirm the changes you want made, a new Tax Credit Certificate will issue within a few days with the amended details included. PAYE Anytime also allows you to claim a range of reliefs including Rent Relief, Home Carers Tax Credit, Bin Charges, Health Expenses and many others as well as the facility to claim refunds for the previous 4 years. Further information on PAYE Anytime including the full range of reliefs is available.

You can also download the Assessable Spouse Election Form from my link above and allocate both tax credits & SRCOP to either spouse as required

JD24

Question answered! Thanks for the replies