Tax Credits

TechnoFreek

Hi,

My wife and I married a couple of years ago but our tax credits are still being claimed singly.

Should we really be claiming them as a couple, what benefits are there to doing this?

Thanks

DoesNotCompute

It should reduce your tax liability. Having said that it depends on your circumstances, it might not be so simple - an accountant can advise on this.

If you are assessed as a married couple, you can opt to be assessed under Seperate Assessment, Seperate Treatment, or Joint Assessment. Depending on your circumstances, one of these three methods may be better than the other methods.

Revenue have an informative page on the matter here: http://www.revenue.ie/en/tax/it/credits/married-persons-taxation.html

TechnoFreek

Thanks for that.

I assume some form of joint assessment would be best if my wife was to take a period of unpaid leave from work?

howardmarks

TechnoFreek wrote: »

Thanks for that.

I assume some form of joint assessment would be best if my wife was to take a period of unpaid leave from work?

Joint assessment is at its most benificial when only one spouse is earning. Give revenue a call and speak with someone

Pawwed Rig

Agreed with other two responders. If you both earn more than €32,800 each there will be no difference whether you a assessed as single or married. If only one of you is working/receiving income then it is more beneficial to be jointly assessed as your 20% band is increased from €32,800 to €41,800.

Tax is a very individual thing so without knowing alot more details it would not be possible to advise you further.

TechnoFreek

Thanks for the advice guys. An accountant will be the next step.

One last question, I earned under 32k for a time after we got married. I'm now above that.

If we opt for joint assessment can I claim back for the period I was earning under 32k post marriage.

Pawwed Rig

TechnoFreek wrote: »

If we opt for joint assessment can I claim back for the period I was earning under 32k post marriage.

Hmmmmm good question. I don't think you can backdate it but I will look it up over the weekend if noone responds here in the meantime.

dearg lady

Joint and separate should give same overall liability. An accountant shouldn't be necessary for PAYE income. Not sure if you can backdate married credits etc

Pawwed Rig

Ok I looked this up for you. Once you are married you are automatically jointly assessed unless you elect otherwise. So if you are still single assessed then either you elected to be single assessed or else Revenue were not informed you were married. In the case of the latter you should call Revenue and tell them. They will probably need to redo your tax comps for the last few years.

I wouldn't bother with an accountant. Just call Revenue. They will sort it out for you. They are better than other public service agencies when it comes to customer service. (if there is 1 thing the Irish government is good at it is collecting cash from workers:D)