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Best use of Tax credits

  • 02-03-2016 9:30am
    #1
    yellowmonkey
    Registered Users, Registered Users 2 Posts: 32 ✭


    Was hoping someone may be able to help...

    I am married working full time and my wife is also working full time.

    My gross wage is €30,000 and my Wifes is €18,278

    We have no kids, no medical card etc.

    We have the standard tax credits of €3,300 Personal Tax credit between us and PAYE credit of €1,650 each.

    I guess the questions are:
    What is the best way for us to split the personal tax credits;
    does she need any of the €3,300 as she is earning less?

    what will our take home pay each be?

    Thanks in advance for any help
    Tagged:


Comments

  • #2
    seamus
    Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    You don't necessarily need to "split" the credits. You can't take all €3,300 of her credit, you can only take the non-PAYE credit.

    Simpler overall may be to file a joint assessment tax return at the start of each year (when you both get your P60s). This will aggregate all of your income and credits together effectively as a single income and determine if you're due a refund.

    Splitting and reassigning credits means that you may have to change the setup again if either of your salaries change. At least with the yearly return you can operate as you are and then get a small chunk of change refund every February.


  • #3
    yellowmonkey
    Registered Users, Registered Users 2 Posts: 32 ✭yellowmonkey


    Is there any way we benefit from loading the credits in eithers favour to take home more with her being a low income earner?


  • #4
    Sunny Dayz
    Registered Users, Registered Users 2 Posts: 5,517 ✭✭✭Sunny Dayz


    To be honest any change between credit allocation won't make any difference overall. Split evenly between you, you are both fully utilising the tax credits. Moving tax credits from one to the other just means the one of you would see an increase in net pay while the other would see a decrease, but the net income into the house would be the same. Neither of you are in the higher tax bracket either. I would leave as is. If your wife's income drops below 16,500 then maybe reconsider transferring some credit.


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