Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Paye taxes for married couples and one spouse being tax-exempt

  • 05-04-2015 10:15am
    #1
    robag83
    Closed Accounts Posts: 3 ✭


    Hi all,

    I have a query related to taxation bands for PAYE and Tax credits, as my case is a bit specific.

    I am considering to get married but my potential spouse is a PhD student at the university and has a year salary of 16,000 EUR which is exempt of any taxes. In my case, I have regular tax conditions.

    My interpretation is that, if we get married, she will still be tax-exempt, and in my case the band for 20% will grow up to 42,800 EUR and my tax credits will turn to be 3,300 EUR for married person instead of the 1650 EUR for single person.

    could somebody who knows about those situations help us?

    thanks!


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    robag83 wrote: »
    Hi all,

    I have a query related to taxation bands for PAYE and Tax credits, as my case is a bit specific.

    I am considering to get married but my potential spouse is a PhD student at the university and has a year salary of 16,000 EUR which is exempt of any taxes. In my case, I have regular tax conditions.

    My interpretation is that, if we get married, she will still be tax-exempt, and in my case the band for 20% will grow up to 42,800 EUR and my tax credits will turn to be 3,300 EUR for married person instead of the 1650 EUR for single person.

    could somebody who knows about those situations help us?

    thanks!

    What makes you think her 16k is tax exempt? Are you sure she just doesn't pay any PAYE because 16k < [(1,650+1,650)/20%]...


  • #3
    mistress_gi
    Registered Users, Registered Users 2 Posts: 964 ✭✭✭mistress_gi


    Yes, I can confirm this is the case. Me and my husband were in the same situation. Just make sure you get all the tax credits you are entitled too as a couple, ie you need to e the assessable spouse.
    Just be aware that when she finishes her PhD if she needs to go to social welfare for JBS you will be jointly assessed.


  • #4
    mistress_gi
    Registered Users, Registered Users 2 Posts: 964 ✭✭✭mistress_gi


    barneystinson wrote: »
    What makes you think her 16k is tax exempt? Are you sure she just doesn't pay any PAYE because 16k < [(1,650+1,650)/20%]...

    It's a scholarship not wages. I was in the same situation


  • #5
    robag83
    Closed Accounts Posts: 3 ✭robag83


    Hi all,

    thanks for your feedback.

    mistress_gi, is then my interpretation about bands, and tax credit correct (i.e. 42800 EUR)?


  • #6
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    mistress_gi wrote: »
    It's a scholarship not wages. I was in the same situation

    I appreciate that, but he needs to confirm that as a fact, rather than assuming it, since a person on a salary of a taxable16k also pays no tax... ;)


  • Advertisement
  • #7
    robag83
    Closed Accounts Posts: 3 ✭robag83


    I confirm this is the case. it is an IRCSET scolarship


  • #8
    mistress_gi
    Registered Users, Registered Users 2 Posts: 964 ✭✭✭mistress_gi


    robag83 wrote: »
    Hi all,

    thanks for your feedback.

    mistress_gi, is then my interpretation about bands, and tax credit correct (i.e. 42800 EUR)?

    Not sure about the tax bands or credits, even today I am not great at all these revenue things. I have tried to understand it but still can't get my head around it! For me it wouldn't go amiss if revenue ran something like a masterclass to teach people about these things!
    But you can see info here:
    http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/how_your_tax_is_calculated.html#l2729c

    It looks to me that your interpretation is spot on!

    barneystinson wrote: »
    I appreciate that, but he needs to confirm that as a fact, rather than assuming it, since a person on a salary of a taxable16k also pays no tax... ;)

    Again, I was in the same situation, the university communicates to revenue about this (not sure which form it is, it has been around 8 years for me). Because it's a scholarship it is not taxable, ie. she is a students:

    http://www.revenue.ie/en/personal/circumstances/student.html


  • #9
    [Deleted User]
    Posts: 24,714 ✭✭✭✭ [Deleted User]


    barneystinson wrote: »
    I appreciate that, but he needs to confirm that as a fact, rather than assuming it, since a person on a salary of a taxable16k also pays no tax... ;)

    They would pay usc etc though whereas PhD stipends are exempt from all deductions (paye, prsi, usc etc). Every year during my PhD I signed a revenue exemption form. My gross and net pay were exactly equal every year.


Advertisement