Tax Credits with wife on career break

William72

Hi All - hope someone can help me with what I thought was a simple question but am literally boggle eyed from all the confusing information out there.

My wife is considering taking a career break to look after our 3 young kids full time for a year or two. I understand that she can transfer her tax credits to me for the period that she is not at work. My question is simply - how much is that?

Are we talking just the €1650 single tax credit? Meaning the benefit in terms of extra take home pay to me is 1650/12 = €137.50 per month....??? That can't be it surely? Hope I have that completely wrong and someone out there can advise....

Thanks

adrianw

There are a few more benefits. Your tax band at which you pay income tax at 20% will increase from €33,800 to €42,800.

(edited - apologies wrong year)

CIARAN_BOYLE

adrianw wrote: »

There are a few more benefits. Your tax band at which you pay income tax at 20% will increase from €32,800 to €41,800.

€33,800 to €42,800 in 2015 which is another €1,800 a year potentially.

Its also possibly that your wife is entitled to other tax credits which can be allocated to you.

Is it possible for your wife to go on restricted work, say one or two days a week as this will probably be more tax efficient.

William72

CIARAN_BOYLE wrote: »

€33,800 to €42,800 in 2015 which is another €1,800 a year potentially.

Its also possibly that your wife is entitled to other tax credits which can be allocated to you.

Is it possible for your wife to go on restricted work, say one or two days a week as this will probably be more tax efficient.

thanks both - unfortunately the 1/2 day week is not an option Ciaran I'm afraid - she's has had to fight tooth and nail to hang on to the 4 day week she currently has.... hence the plan B