Wife on Social Welfare - Impact on Income Tax

William72

probably a very simple question but I can't seem to find the answer and revenue were more than a little vague when i rang....

So my wife is being made redundant at the end of the year. We are currently assessed for tax seperately but will be moving to joint assessment for 2011. She'll be on social welfare (job seekers benefit) for a time presumably so I'm wondering how that is treated from an income tax point of view. Is it treated as income and so my salary + her dole = joint income or is it only my salary thats taken into account when we're jointly assessed?

Thanks

nompere

Courtesy of Revenue leaflet IT24:

Jobseekers Benefit (formerly known as Unemployment Benefit) is a taxable source of income. However the child dependant element and the first €13 per week of benefit are exempt from tax.

Jobseekers Allowance is not a taxable source of income.

So your income and her benefit will be assessed together.

Leela0311

Make sure you take all of her tax credit though. As she won't be using them until she gets another job.

William72

thanks guys - this is what I thought (from reading the revenue website) but wanted to check so rang them and was told its not taken into account. Knew that couldn't be right - what a great service :mad: ah well - back to the budget plan for me