(Tax) Benefits of Marriage

A most unromantic question:
What are the financial pros and cons of getting married?

relax carry on

Ixelles wrote: »

A most unromantic question:
What are the financial pros and cons of getting married?

Depends on your circumstances. Income? Both working? Children? What basis of assessment are you going to take? Like in nearly all aspects of the income tax system, each case is unique.

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

relax carry on

relax carry on wrote: »

Depends on your circumstances. Income? Both working? Children? What basis of assessment are you going to take? Like in nearly all aspects of the income tax system, each case is unique.

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

Thanks for the link, very helpful. So, if there were a few years where one partner had quite low income (say, a self-employed woman after having a baby) it might be worth transferring credits to the spouse working full-time.

Might work this into a marriage proposal eventually
'Give me your hand, your heart, your body, your soul, your tax credits...'

relax carry on

Ixelles wrote: »

relax carry on wrote: »

Depends on your circumstances. Income? Both working? Children? What basis of assessment are you going to take? Like in nearly all aspects of the income tax system, each case is unique.

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

Thanks for the link, very helpful. So, if there were a few years where one partner had quite low income (say, a self-employed woman after having a baby) it might be worth transferring credits to the spouse working full-time.

Might work this into a marriage proposal eventually
'Give me your hand, your heart, your body, your soul, your tax credits...'

I would love to see that.

In a case like you describe above, it could be beneficial. There is also the home carers tax credit to consider if applicable in joint assessment cases.

http://www.revenue.ie/en/tax/it/leaflets/it66.html

Thanks - very useful

studdlymurphy

relax carry on wrote: »

I would love to see that.

In a case like you describe above, it could be beneficial. There is also the home carers tax credit to consider if applicable in joint assessment cases.

http://www.revenue.ie/en/tax/it/leaflets/it66.html

So if in my case I work my wife doesnt she minds the kid. I transfer money to her each week she could claim tax credits like as if it was a wage I was paying her?

relax carry on

studdlymurphy wrote: »

relax carry on wrote: »

I would love to see that.

In a case like you describe above, it could be beneficial. There is also the home carers tax credit to consider if applicable in joint assessment cases.

http://www.revenue.ie/en/tax/it/leaflets/it66.html

So if in my case I work my wife doesnt she minds the kid. I transfer money to her each week she could claim tax credits like as if it was a wage I was paying her?

She can't claim any credits or reliefs on money you transfer to her as its not assessable income.
Think you might be looking at the home carers tax credit wrong. The home carers tax credit is added to your credits to reduce the tax you pay, if you and your wife meet the criteria.

studdlymurphy

so if she earns nothing we get the full tax credits? is this per child? Im assuming not as it doesnt mention anything about it.

I just looked at the Citizens Information page on legal prerequisites for a civil partnership and was surprised to find the following:

To be legally entitled to become a civil partner, both of you must fulfill all of the following requirements at the time the registration of the civil partnership takes place. Both parties must:
...
Be of the same sex - for legal purposes, a person's gender is deemed to be the one he/she had at birth, even if he/she subsequently had medical procedures to alter his/her gender.

Really? Hadn't realised that before. I thought it was another option available in parallel to marriage. In several European countries, and in Australia and probably elsewhere, you can opt for a civil union regardless of gender.

No doubt I'm way behind on a debate that has already taken place elsewhere but I must admit that this aspect of the civil partnership story passed me by.

So same-sex couples can't get married and opposite-sex couples can't have a civil union. Not exactly a giant leap forward in equality is it?

bewhiched

We are worse off since getting married as my husband doesn't get his dole now cause I'm earning must be a certain amount and he gets no dole???? Mad!!! So should have stayed single??

bewhiched

bewhiched wrote: »

We are worse off since getting married as my husband doesn't get his dole now cause I'm earning must be a certain amount and he gets no dole???? Mad!!! So should have stayed single??

New thread: the (tax) benefits of divorce....:)

bewhiched

Haa haa looking that way????? Hard to believe though?????

marketty

bewhiched wrote: »

We are worse off since getting married as my husband doesn't get his dole now cause I'm earning must be a certain amount and he gets no dole???? Mad!!! So should have stayed single??

You don't have to be married for this to be the case, just cohabiting. And cohabiters don't even get the tax credits which you do

bewhiched

My god really that's mad too didn't know that I always find a lot of that tax jargon is very hard to understand!!! Thanks guys

Mr. Incognito

Main benefit is that you are one person for tax purposes so interspousal transfers are all tax free.

This applies up to the date of Divorce and operates after death on inheritance.

Stheno

Mr. Incognito wrote: »

Main benefit is that you are one person for tax purposes so interspousal transfers are all tax free.

This applies up to the date of Divorce and operates after death on inheritance.

Actually if you divorce and do not remarry you can maintain that status if both spouses agree and it is to your benefit.

From www.revenue.ie

What happens if a couple divorce?

Where a couple obtain an Irish divorce the provisions as outlined above will apply to any maintenance arrangements made by order of the Court. This means that:

Maintenance payments are made without deduction of tax
The spouse who makes the payments is entitled to a tax deduction for them
The spouse who receives the maintenance is taxable on the payments
Both spouses are taxed as single persons.

A divorced couple also have the option of being treated as a married couple for income tax purposes if:

They are both resident in the State and
Neither spouse has remarried.

Seems to be something that is not well known, when I asked the revenue about it, they said no, then looked it up and informed me, "you learn something new every day!"

Mr. Incognito

Stheno wrote: »

Actually if you divorce and do not remarry you can maintain that status if both spouses agree and it is to your benefit.

From www.revenue.ie



Seems to be something that is not well known, when I asked the revenue about it, they said no, then looked it up and informed me, "you learn something new every day!"

It almost never happens.

The reason is that the Court will divide the assets upon divorce.

The_Honeybadger

I work full time, my wife has been home the past 18 months minding our two children so we transferred her credits to me. She is currently looking for a p/t job to keep her sanity as much as anything else. She will likely be only earning a small amount, probably 100-150 per week if and when she finds a suitable job. I earn almost 50k, would we be better off transferring her credits back to her?

relax carry on

mickeyk wrote: »

I work full time, my wife has been home the past 18 months minding our two children so we transferred her credits to me. She is currently looking for a p/t job to keep her sanity as much as anything else. She will likely be only earning a small amount, probably 100-150 per week if and when she finds a suitable job. I earn almost 50k, would we be better off transferring her credits back to her?

You do not have her full tax credits and rate band as its not possible to transfer the whole lot. Your wife still has her paye credit and 23800 of her rate band. The paye credit will cover 8250 for the year without her paying any paye on her earnings.
So if her yearly earnings are likely to be under 8250 Euro, then leave the credits and rate band as they are.

The_Honeybadger

relax carry on wrote: »

You do not have her full tax credits and rate band as its not possible to transfer the whole lot. Your wife still has her paye credit and 23800 of her rate band. The paye credit will cover 8250 for the year without her paying any paye on her earnings.
So if her yearly earnings are likely to be under 8250 Euro, then the credits and rate band as they are.

It will be under 8k I reckon thank you for that very informative.