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Tax credits

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  • 15-11-2016 9:36am
    #1
    lostsoul01
    Registered Users Posts: 31 ✭


    Hi All
    I am separted mum of two kids. Separated in late 2013, I started working full time in July 2015. When can I claim my single person child carer credit for 2016? My ex is asking that I relinquish it for 2015 as it would be moe benefit to him, I dont know anything about tax credits so just wondering is this the norm, usual time for tax credits to be claimed for 2015? Has anyone used red oak? Looking fior some honest advise and feedback. Thanks
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    #2
    gerrybbadd
    Registered Users Posts: 10,301 ✭✭✭✭gerrybbadd


    lostsoul01 wrote: »
    Hi All
    I am separted mum of two kids. Separated in late 2013, I started working full time in July 2015. When can I claim my single person child carer credit for 2016? My ex is asking that I relinquish it for 2015 as it would be moe benefit to him, I dont know anything about tax credits so just wondering is this the norm, usual time for tax credits to be claimed for 2015? Has anyone used red oak? Looking fior some honest advise and feedback. Thanks

    You can claim for 2016 now.

    Were you working & paying tax in 2015? You don't have to relinquish the credit to your ex, if you need it for yourself.


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    #3
    lostsoul01
    Registered Users Posts: 31 ✭lostsoul01


    Hi, thanks. Yes I was working part time in 2015 and then full time from July 15. My bex is self employed so looking for my cerdiots for that year as thinks they would benefit him more than me?


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    #4
    gerrybbadd
    Registered Users Posts: 10,301 ✭✭✭✭gerrybbadd


    lostsoul01 wrote: »
    Hi, thanks. Yes I was working part time in 2015 and then full time from July 15. My bex is self employed so looking for my cerdiots for that year as thinks they would benefit him more than me?

    It really depends on how much you earned. Were you paying tax in 2015? If so, you may stand to benefit from having this credit.


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    #5
    relax carry on
    Registered Users Posts: 4,074 ✭✭✭relax carry on


    lostsoul01 wrote: »
    Hi, thanks. Yes I was working part time in 2015 and then full time from July 15. My bex is self employed so looking for my cerdiots for that year as thinks they would benefit him more than me?

    Are you paying tax? That is Paye, not usc or PRSI. What are your likely gross earnings for 2016 and what were they for 2015?


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    #6
    lostsoul01
    Registered Users Posts: 31 ✭lostsoul01


    Hi, yes I am paying tax. Gross earnings for 2015 was roughly 15k and for 2016 is 23k plus 4k bonus


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    #7
    gerrybbadd
    Registered Users Posts: 10,301 ✭✭✭✭gerrybbadd


    lostsoul01 wrote: »
    Hi, yes I am paying tax. Gross earnings for 2015 was roughly 15k and for 2016 is 23k plus 4k bonus

    You won't need the credit then for 2015 as your Personal & PAYE credits are more than enough to cover the tax liability on 15K.

    For the 2016 tax year, You could use the credit against your income. That being said, if your ex's income goes above the 20% cut off point into the higher rate, he could stand to benefit more from the credit.

    Your income is all at the 20% rate, meaning that if you claim the credit in 2016, you will pay 1650 less in tax.

    If his income is in the 40% bracket, he would have the 1650, and a feature of the credit is an increased rate band of 4000 meaning that he would pay tax on 4000 more at 20% rather than 40%, resulting in a saving of another 800. This is if you relinquish the credit to him


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