Just Married

Ryan T

Hi all , hope someone can help me

I got married on new years eve 2011 and am wondering about taxation.

I could never work out paye and prsi etc ( even after looking at sites and the sticky on here)

Will we pay more or less tax now we are married. I earn about 60k and my wife 28k. (We have a child if that matters) and we are both public servants

Just need some advice as cash is pretty tight

Thanks

Citizenpain

bottom line- you will pay less going forward

http://www.revenue.ie/en/tax/it/leaflets/it2.html#section2

no refund for 2011 though i'd say / maybe one day

Ryan T

Great thank you

Do you know any site where I can enter our details to find out how much tax we will pay.
Also how do we divide out credits and bands etc
Not great at tax or numbers
Thanks

relax carry on

Ryan T wrote: »

Hi all , hope someone can help me

I got married on new years eve 2011 and am wondering about taxation.

I could never work out paye and prsi etc ( even after looking at sites and the sticky on here)

Will we pay more or less tax now we are married. I earn about 60k and my wife 28k. (We have a child if that matters) and we are both public servants

Just need some advice as cash is pretty tight

Thanks

PAYE is easier than most people think. There are two elements to the system. First part is the standard rate band. Currently that is 32800 euro for a single person. That means that you are taxed at 20% up to 32800. Anything you earn above that is taxed at 41%.
The second part of the system are tax credits. Currently the personal tax credit and PAYE credit add up to 3300. These are deducted from your tax due to reduce your liability.

So using your example above, on a taxable income of 28000 the below is how it works out.
28000 @ 20% is 5600 euros minus 3300 tax credit is 2300 tax due.

On a taxable income of 60000 its as follows.

32800 @ 20% + 27200 @ 41% gives 6560 + 11152 which is 17712. You take your tax credits of 3300 from 17712 to give 14412 tax due.

The above examples are as two single people. If you opt for joint assessment, you can transfer 4800 euro worth of rate band from the person earning 28000 as they are not using 4800 of their rate band. This means that person earning 60000 increases their rate band to 37600. This changes the above calculation which results in 13404 euro due instead of 14412. This is a saving of 1008.

The below links will assist you further. Having a child has no bearing on your present circumstances but would if only one of you was working.

http://www.revenue.ie/en/personal/faqs/how-do-i-work-out-my-tax.html

http://www.revenue.ie/en/tax/it/leaflets/it2.html

lobber

relax carry on wrote: »

So using your example above, on a taxable income of 28000 the below is how it works out.
28000 @ 20% is 5600 euros minus 3300 tax credit is 2300 tax due.

On a taxable income of 60000 its as follows.

32800 @ 20% + 27200 @ 41% gives 6560 + 11152 which is 17712. You take your tax credits of 3300 from 17712 to give 14412 tax due.

The above examples are as two single people. If you opt for joint assessment, you can transfer 4800 euro worth of rate band from the person earning 28000 as they are not using 4800 of their rate band. This means that person earning 60000 increases their rate band to 37600. This changes the above calculation which results in 13404 euro due instead of 14412. This is a saving of 1008.

The below links will assist you further. Having a child has no bearing on your present circumstances but would if only one of you was working.

I am looking into this at the moment and can easily follow the above. My wife and I are married since Sept last year and only getting around to this now.
I earn 34K and she earns 32K so I gather there is little value in transferring any credits between us??

Also we both have pension deductions (5% of salary) and my health insurance is deducted at source. Do we simply deduct these figures from out taxable income prior to applying the relevant rate??