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Basic Income Tax Question - Married Couple

  • 08-05-2013 9:45pm
    #1
    postalservice
    Registered Users, Registered Users 2 Posts: 362 ✭✭


    Hi there,

    I was just wondering how the married couple income tax bands work if both individuals have Sch E income of €40,000.

    Is €63,800 taxable at 20% or €65,600?

    Hope someone can help!

    Thanks!


Comments

  • #2
    hfallada
    Closed Accounts Posts: 4,180 ✭✭✭hfallada


    Google Deloitte income tax calculor. It works it out for you there


  • #3
    postalservice
    Registered Users, Registered Users 2 Posts: 362 ✭✭postalservice


    Thanks ya I tried that earlier but I was under the impression that the maximum increase on the €41,800 was €23,800 but that calculator says otherwise so It'd be great to get some clarification from someone.

    I've tried the revenue website and a few other sources already.


  • #4
    smeharg
    Registered Users, Registered Users 2 Posts: 300 ✭✭smeharg


    €65,600 is taxable at 20%. Each will get a full standard rate band of €32,800 (provided normal circumstances apply and the rate band hasn't been reduced).

    It looks like you've allocated the full €41,800 to the assessable spouse and €23,800 to the second spouse. As the assessable spouse's income is only €40,000 then €1,800 of the standard rate band isn't being utilised. So you're getting a total standard rate band of 40,000+23,800=63,800.

    Here's a link to the relevant section of the Revenue website:

    http://www.revenue.ie/en/tax/it/leaflets/it1.html#section3


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