Married 1/2 incomes doubt

akesha

Hello,

my husband has stopped working for a while, because he is ill, and I am wondering if I should change my status in the revenue to married one income.

The thing is, that we both are ITs, and for taxation purposes is better for us (when we both are working) to maintain status as single.

So my doubt is, if I do the change, in a couple of months or so, I will want to go back to single status. Will the revenue do that without problems? Or might be better to stay as it is now?

gerrybbadd

akesha wrote: »

Hello,

my husband has stopped working for a while, because he is ill, and I am wondering if I should change my status in the revenue to married one income.

The thing is, that we both are ITs, and for taxation purposes is better for us (when we both are working) to maintain status as single.

So my doubt is, if I do the change, in a couple of months or so, I will want to go back to single status. Will the revenue do that without problems? Or might be better to stay as it is now?

There is no such status as married one income.

Are you jointly assessed with your husband? If so, call Revenue, and ask them to transfer any transferrable credits to you on a WEEK 1 BASIS. Your husband should also be put on this basis.

Then, if he goes back to work, he can transfer them back, ensuring to remain on a WEEK 1 BASIS.

This means you will get the benefit of his credits for those weeks you have them only, with no backdating

akesha

I am following the statuses that I see in tax calculators (single, married 1 income, married 2 incomes).

Revenue doesn't know that we are married, as we got married not long ago (late February), and I thought that if they knew, they would count our two incomes and we would get less money.

How can we become jointly assessed? If he goes back to work, and we call the revenue to transfer the credits back, I will get the same net as single?

Thanks!

CIARAN_BOYLE

akesha wrote: »

I am following the statuses that I see in tax calculators (single, married 1 income, married 2 incomes).

Revenue doesn't know that we are married, as we got married not long ago (late February), and I thought that if they knew, they would count our two incomes and we would get less money.

How can we become jointly assessed? If he goes back to work, and we call the revenue to transfer the credits back, I will get the same net as single?

Thanks!

There is never a position under Irish tax law where a married couple will bring home less net income than two single individuals. For that reason please link the calculators you are using or tell us what jurisdiction you are in. Or possibly you are entering the data into the calculators wrongly.

akesha

I am using this website: http://ie.thesalarycalculator.co.uk/salary.php

I am earning 62,7K + 10% bonus and my husband until now 65K.
With a simulation, we will earn 300 euro less per month if we are married

CIARAN_BOYLE

Bad caclulator. Doesn't properly account account for a few factors which influences the calculation.

Trust me you will never be worse off as jointly assessed than as under single assessment.

allthedoyles

A simple rule in Ireland is that when your circumstances change , so do your entitlements .
So from your change in circumstances in February , your tax liability will change too . - you should give Revenue an update .

As your husband is now ill , then his personal circumstances have changed too .

He may have an entitlement to Illness Benefit , and if he decides to claim this it will use some of his tax credits .

SRASE

If you got married in February this year you will both be taxed as single persons in 2016. However if the tax you would have paid as jointly assessed is less than what you paid as single persons you can claim a refund at the end of the year based on the number of months you were married for during the year.

In 2017 you should be jointly assessed unless you opt otherwise. As set out by previous posters you should never be worse off under the joint assessment system.

See Revenue's leaflet for further guidance - http://www.revenue.ie/en/tax/it/credits/married-persons-taxation.html#section1

SRASE

If you got married in February this year you will both be taxed as single persons in 2016. However if the tax you would have paid as jointly assessed is less than what you paid as single persons you can claim a refund at the end of the year based on the number of months you were married for during the year.

In 2017 you should be jointly assessed unless you opt otherwise. As set out by previous posters you should never be worse off under the joint assessment system.

See Revenue's leaflet for further guidance - http://www.revenue.ie/en/tax/it/credits/married-persons-taxation.html#section1

wokingvoter

akesha wrote: »

I am using this website: http://ie.thesalarycalculator.co.uk/salary.php

I am earning 62,7K + 10% bonus and my husband until now 65K.
With a simulation, we will earn 300 euro less per month if we are married

This is a UK tax calculator?

akesha

wokingvoter wrote: »

This is a UK tax calculator?

It is, but it calculates for Ireland as well, see the ie at the beginning.

But if all of you believe that it will be better as jointly assessed, I will do the change.

I have to learn about the ill benefit, as my husband won't recover fully, as he has a chronic illness (MS), and he won't be able to work if he has a relapse. But I don't know if he would fit on that yet, we moved from Spain on September 2014, and he has been working for over a year.