Personal tax credits

galah

Hi all,

just a quick question that I cannot find the answer for on revenue.

I'm married, and the tax credit rate for married people is 3300, however when I look at my tax credits it seems I am only getting half that.

Question therefore: Does this 3300 apply per couple (thus effectively the single rate for each person), or 3300 per person?


Cheers,

galah

barneystinson

galah wrote: »

Hi all,

just a quick question that I cannot find the answer for on revenue.

I'm married, and the tax credit rate for married people is 3300, however when I look at my tax credits it seems I am only getting half that.

Question therefore: Does this 3300 apply per couple (thus effectively the single rate for each person), or 3300 per person?


Cheers,

galah

3300 per couple - Sure otherwise everyone would be getting married purely to double their tax credits!

The benefit of being married is that the 3300 is transferrable between spouses, so if one stays at home, the working spouse can use their tax credit.

galah

Thanks for that, that clears it up! I thought one of the benefits of actually getting married was more favourable tax treatment - can't believe I get nothing out of it...(only joking, hubby if you're reading this, I wuv you wery wery much!) ;-))

Makes sense in a way though...;-)

barneystinson

galah wrote: »

Thanks for that, that clears it up! I thought one of the benefits of actually getting married was more favourable tax treatment - can't believe I get nothing out of it...(only joking, hubby if you're reading this, I wuv you wery wery much!) ;-))

Makes sense in a way though...;-)

But what I just described is a more favourable treatment!

I'll try again!:

For a couple with kids in 2010, where one stays at home or earns less than 5,080, they can claim a home carer credit worth 900, transfer credit of 1,830 to the employed spouse, and transfer standard rate cut off (i.e. additional income that can be earned and only taxed at the standard 20% rate) of 9,000 (worth 1,890 in terms of tax saved).

That's over 4,600 less tax that a married couple with kid(s) will pay in a year, compared to an unmarried couple with the exact same circumstances and income...

(This discrimination is set to end soon when tax law is changed to allow cohabiting couples to register and avail of the same preferential treatment afforded to married couples.)

galah

that's assuming that wifey stays at home to mind the children though...

Unfortunately, that is not the case for us, so zero benefits...