Changing from being taxed as single to married?????

lizabbey7

Hi all I would be very grateful if anyone can answer my questions...

Got married last year and we are now in the process of filling in the Assessable Spouse Election form.

Following info

Husband earns 39k taxable income
Wife earns 30k-32k taxable income but only starting in this job so for this year it will be 26k

For us to be jointly assessed on the form we have to indicate the split of tax credits and also the split of standard rate band. e.g who gets what

What are our best options??? After speaking to tax office they advised we go with joint assessment but couldnt tell us how to divide up credits, told me I had to make that decision.

I would be glad of any advice....

barneystinson

lizabbey7 wrote: »

Hi all I would be very grateful if anyone can answer my questions...

Got married last year and we are now in the process of filling in the Assessable Spouse Election form.

Following info

Husband earns 39k taxable income
Wife earns 30k-32k taxable income but only starting in this job so for this year it will be 26k

For us to be jointly assessed on the form we have to indicate the split of tax credits and also the split of standard rate band. e.g who gets what

What are our best options??? After speaking to tax office they advised we go with joint assessment but couldnt tell us how to divide up credits, told me I had to make that decision.

I would be glad of any advice....

Firstly, since you got married last year did you get that sorted yet? If he earned 39k last year as well, then he will have paid tax at high rate, which can be reduced by transferring any unused credits/cut-off from you.

As for 2011, you have 32,800 each at 20%, a total of 65,600. So you should take 26k-ish of cut-off point and let him have 39k-ish. (You'd then need to consider at the end of the year what way to arrange things next year).

lizabbey7

I understand that but the form is really confusing me...

on the form it asks us to state what way we want to allocate both the tax credits and also what way to allocate the standard rate band...

they could really do with putting an example of it filled in on the revenue website

Mr. Incognito

Just elect joint assessment and you are treated as one tax person.

that way you don't have to or need to split credits.

split all credits 50/50 and ensure you get a p21 balancing statement every year and you'll have no issues

leave the standard rate band blank- you really don't want to mess with that

also I see a LOT of people complaining that they get no help over the phones.

the first year trainees answer the phones- if you are getting no joy ask to speak to someone else in the office more senior that actually can assist you

lizabbey7

thanks for that...have to agree not great help on the phone was told we would be better off if was only earning 20k.....and that we had to make the decision ourselves

if we go with divided equally then whatever credits I have left over wont benefit my husband or are they transferred at the end of the year??? im sorry this has me very confused...anything other tax issues I completely understand but this is ridiculous no help on phones and online doesnt give examples...

Pandoras Twist

With joint assessment and separate assessment you can each benefit from the others left over tax credits. With single assessment you cannot.

As you are currently

Husband: 32,800@ 20% and 6,200 @ 41% = 9,102
You: 26,000@ 20% = 5,200
= 14,302

If you move your rate band (which I thought happened automatically with joint assessment, but I'm open to correction on this) it will be

65,000@ 20% = 13,000

This is before PRSI and USC etc. though