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Seperation and taxation

  • 24-02-2012 3:05pm
    #1
    Registered Users, Registered Users 2 Posts: 2


    Hi there, I've been separated for over a year and I am trying to sort out all the legal and financial arrangements which need to be done in order for both of us to move on. Like most people in Ireland I am finding it a strain to survive after all my outgoings and hoping that my tax might lower after the declaring my situation to the revenue. There are a few questions which I would like some advice or answers on from other people who have experienced or are in the same situation.

    1. Is it better financially to stay taxed as a couple or as single person?
    2. Can I claim rent allowance if I am still paying a mortgage on the family home?
    3. Am I entitled to any extra tax credits on the maintenance I pay my ex wife?
    4. Is there anything that I haven't thought about that someone else may have done?

    Thank you for taking the time to read this and hopefully you may have a few answers or suggestions for me:)


Comments

  • Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    Tom79 wrote: »
    Hi there, I've been separated for over a year and I am trying to sort out all the legal and financial arrangements which need to be done in order for both of us to move on. Like most people in Ireland I am finding it a strain to survive after all my outgoings and hoping that my tax might lower after the declaring my situation to the revenue. There are a few questions which I would like some advice or answers on from other people who have experienced or are in the same situation.

    1. Is it better financially to stay taxed as a couple or as single person?
    2. Can I claim rent allowance if I am still paying a mortgage on the family home?
    3. Am I entitled to any extra tax credits on the maintenance I pay my ex wife?
    4. Is there anything that I haven't thought about that someone else may have done?

    Thank you for taking the time to read this and hopefully you may have a few answers or suggestions for me:)

    Every case is different, so you really need to go and talk to a professional. The Irish Tax Institute publishes a book on this area if you want to do it yourself -- though it hasn't been updated for a while: http://www.taxireland.ie/services/467.aspx

    In general, a married couple pay least tax if they are jointly assessed. A married couple are treated as living together unless they have a formal separation (either by a court or a deed) or are separated in such circumstances that the separation is likely to be permanant.

    Where there is a formal separation a couple may elect for joint assessment. Where there is an informal separation the couple may choose to be jointly assessed on the grounds that they might get together again.

    Joint assessment does require the two spouses to co-operate -- and that might be difficult!

    There's nothing in the rent credit legislation that will prevent you from claiming that relief even if you are paying the mortgage on a property you aren't living in. (I have personal experience of that one.)

    Good luck.


  • Registered Users, Registered Users 2 Posts: 2 Tom79


    Thanks for your reply Nompere and as we are at the stage of drawing up a deed of separation and going on your information it is likely that i will have to be assessed as a single person again which i didn't want to do for financial reasons obviously. I will look into claiming tax credits for renting and that at least will be a bit of a bonus:)


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