Form 11E - Maternity benefit

BA_bike

Hi,
I have had a browse through threads to see if this question has already been asked - apol's if it had.

This is my scenario:
Myself and my wife are both PAYE workers. I complete a Form 11E as I have rental income and include health expenses and we are jointly assessed.
In 2014 my wife received maternity benefit and this was paid directly to her. Her employer adjusted her tax credits accordingly.

There is a field on the Form11E to complete referring to "taxable social welfare payments" and i included the maternity benefit that my wife received. This is considered schedule E income and hence i must pay tax on it, but am double counting the tax payment by inputting this as it has already been taxed through the reduction of her tax credits?

I'd appreciate if somebody could clarify. Thanking you in advance.
Barry.

gerrybbadd

BA_bike wrote: »

Hi,
I have had a browse through threads to see if this question has already been asked - apol's if it had.

This is my scenario:
Myself and my wife are both PAYE workers. I complete a Form 11E as I have rental income and include health expenses and we are jointly assessed.
In 2014 my wife received maternity benefit and this was paid directly to her. Her employer adjusted her tax credits accordingly.

There is a field on the Form11E to complete referring to "taxable social welfare payments" and i included the maternity benefit that my wife received. This is considered schedule E income and hence i must pay tax on it, but am double counting the tax payment by inputting this as it has already been taxed through the reduction of her tax credits?

I'd appreciate if somebody could clarify. Thanking you in advance.
Barry.

Revenue will have reduced the tax credits to account for the tax due on the maternity benefit at the time. An employer cannot adjust a person's tax credits themselves - they have to be instructed to do so by Revenue only.

Have you considered filing the return online? The relevant amounts will be "pre-populated" into the form for you (like Taxable DSP income, both your employment incomes) leaving you to just input your rental income, and whatever tax credits you want to claim

BA_bike

Thanks a million for the response. when I saw "taxable social welfare payments" I panicked and input the amounts but I should have checked the credits first.

I have submitted my paper form incorrectly. I guess I just need to ring them and try to explain my case - hopefully it won't take half the day to get through! Would anybody know Would an email or a letter suffice?

I did try to set myself up online a number of times but failed miserably due to a prior period issue relating to my wife's health expenses before we got married! I sorted that out last year so it should now be more straightforward. I think doing this online is definitely the way forward! Thanks again!

gerrybbadd

BA_bike wrote: »

Thanks a million for the response. when I saw "taxable social welfare payments" I panicked and input the amounts but I should have checked the credits first.

I have submitted my paper form incorrectly. I guess I just need to ring them and try to explain my case - hopefully it won't take half the day to get through! Would anybody know Would an email or a letter suffice?

I did try to set myself up online a number of times but failed miserably due to a prior period issue relating to my wife's health expenses before we got married! I sorted that out last year so it should now be more straightforward. I think doing this online is definitely the way forward! Thanks again!

You'd nearly be better writing than emailing I'd say. A lot of the email addresses are soon gonna be gone.

AFAIK, you're allowed to make 3 adjustments to your return, so doing it in writing may be the best course of action