Single or Joint Assessment?

antodeco

Hi all,
I got married last year and didn't bother looking into the tax situation. I've now decided to see what's best but I'm totally confused. I will give a break down of both our incomes:

Myself: €32600 per year. Claiming for our daughter also.

Wife: €26000 per year. No other tax relief

Would we be better staying singularly assessed or better off jointly assessed as a married couple?

Thanks

Legend100

At the moment it makes no difference as ye are both taxed at the lower marginal rate (20%)

however, you are very close to the band of 32,800 so if you are anticipating a pay rise, you should then look to be jointly assessed based on your wife's current income


.......dare I ask but what do you mean by "claiming for our daughter"?
If that is that you are getting the one parent family credit (now replaced with the Single Person Child Carer Credit) - you shouldn't be if ye are living together

relax carry on

antodeco wrote: »

Hi all,
I got married last year and didn't bother looking into the tax situation. I've now decided to see what's best but I'm totally confused. I will give a break down of both our incomes:

Myself: €32600 per year. Claiming for our daughter also.

Wife: €26000 per year. No other tax relief

Would we be better staying singularly assessed or better off jointly assessed as a married couple?

Thanks

At those income levels there's not going to be any difference however being jointly assessed allows for transfer of rate band and credits during an active tax year in case of any sudden changes in your circumstances which is always a plus.

Also picking up on the "claiming for our daughter" if you are referring to the one parent family tax credit, you may be claiming for a credit you no longer qualify for.

antodeco

Thanks for the replies. Sorry, I had been getting the one parent credit, but not on it anymore (as revenue know we were living together). I thought you still got an allowance when you became married, hence me leaving it in there as a possible for this year. Seems like its not going to make a difference really, with the exception of me no longer getting any tax credit for our child, so down a bit for the year. Do I still need to inform revenue we became married?

relax carry on

antodeco wrote: »

Thanks for the replies. Sorry, I had been getting the one parent credit, but not on it anymore (as revenue know we were living together). I thought you still got an allowance when you became married, hence me leaving it in there as a possible for this year. Seems like its not going to make a difference really, with the exception of me no longer getting any tax credit for our child, so down a bit for the year. Do I still need to inform revenue we became married?

You do not need to but it's always good to keep Revenue up to date with any changes in your circumstances.