Co-habitating couple, question on taxation when there's a child

joker77

The situation is that we are a co-habitating couple - she has been unemployed the last 2 years, I'm in full time employment, and we're about to have our first child.

The Social welfare view us a co-habitating couple (she's not elligle for any help the last year, no maternity benefit etc), but the Revenue view us as single individuals. As a lot of people know - it's an unfair system, but it's not about to change any time soon. We've been engaged nearly 2 years, and will probably have a small wedding (can't afford anything else at the moment), purely to avail of tax credits. Fúcked up, but I reckon we'll be forced into it.

Anyway, the question is - will anything change when there's a child involved? Did I read somewhere that I can avail of extra tax credits because of having a child?

Is there anything else we can get some help with? (Childrens allowance being the obvious one).

Lastly - what's the easiest way for me to calculate what the difference is tax wise with us being single and married?

kennyb3

For while you's are 'single' look at the one parent family credit

For when you get married look at the home carer credit.

joker77

kennyb3 wrote: »

For while you's are 'single' look at the one parent family credit

Not eligible as far as I know because we live together?

kennyb3 wrote: »

For when you get married look at the home carer credit.

Really? Surely not eligible here as every married couple would be claiming it

kennyb3

joker77 wrote: »

Not eligible as far as I know because we live together?

See IT9, to me you fail neither of the two conditions stated

joker77 wrote: »

Really? Surely not eligible here as every married couple would be claiming it

A lot of married couples would have 2 incomes, and once you go over a certain level (circa 5k off the top of my head), it more beneficial not to claim it.

http://www.revenue.ie/en/tax/it/credits/home-carers.html

kennyb3

Just to add dont confuse the OPFA with the OPFC. One is welfare the other is a revenue credit.

joker77

kennyb3 wrote: »

See IT9, to me you fail neither of the two conditions stated

It states:
You do not qualify for One-Parent Family Tax Credit if:
* You are a person qualifying for the Married Person’s Tax Credit
or
* You are a person living together with another person as man
and wife

They are covering their bases. The second part would rule us out, I'm fairly certain....

censuspro

From revenue point of view, it's fairly straight forward, both you and your partner are treated as single persons. If you are living together as a family you will not be entitled to the single parent tax credit.

From Social Welfare point of view, both assessed as a married couple. the mother will receive a child benefit payment of €140 per month, however your partner could also claim for your new baby as a dependent which you may or may not be entitled to depending on what your earnings are as Social Welfare will assess both of you on your joint incomes. You should also tell your partner to apply for a medical card as this will be very useful when the new baby comes along and also gives some peace of mind.

Ultimately your social welfare entitlements will depend on how much you earn.