Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Joint taxation

  • 17-12-2011 3:21am
    #1
    bernyh
    Closed Accounts Posts: 249 ✭✭


    Question friend of mine, she had been claiming disablity from Jan to May, when she was let go from her job (in may didnt' claim any other social welfare payments since).. husband is working full time, but were looking into getting tax credits back. Does the social welfare accrue tax, she has a joint claim form from the tax office which asks for the yearly taxable income... is sick pay taxable?

    if wife earned circa 4200k (social welfare)
    husband earned circa 30000k
    what is the best way to assess the tax for the year? (as a married couple or as two singles?)

    None of us have any clue, between 6 of us we couldn't decide what is the best thing to do. Should they be seperately assessed or jointly?


Comments

  • #2
    relax carry on
    Registered Users, Registered Users 2 Posts: 4,113 ✭✭✭relax carry on


    bernyh wrote: »
    Question friend of mine, she had been claiming disablity from Jan to May, when she was let go from her job (in may didnt' claim any other social welfare payments since).. husband is working full time, but were looking into getting tax credits back. Does the social welfare accrue tax, she has a joint claim form from the tax office which asks for the yearly taxable income... is sick pay taxable?

    if wife earned circa 4200k (social welfare)
    husband earned circa 30000k
    what is the best way to assess the tax for the year? (as a married couple or as two singles?)

    None of us have any clue, between 6 of us we couldn't decide what is the best thing to do. Should they be seperately assessed or jointly?

    Separate Assessment and Joint Assessment are essentially the same thing in that at the end of the year review you pay the same tax. However Joint Assessment is the best of the two as it allows you to transfer credits and rate band during a tax year. This covers unfortunate situations where one persons income drops during the year.
    Separate Assessment means you have to wait until the end of the tax year to see if any refund is due to you.

    In your above example, if one person had a taxable income of 4200 euro and the other 30000 then Joint assessment is the way to go. Leave the non transferable credits and rate band with the smallest income and move the remainder to the other.

    Disability Benefit is a taxable source of income.


Advertisement