Tax after getting married - advise appreciated.

lg01

I got married last year and I now need to notify the revenue as I believe there are some tax benefits. I am a high earner, close to 100k. My wife is a lower earner, currently on 20k but could go to 30k this year if she gets a new job.

I need to write to the revenue and tell them I'm now married so they increase our tax credits. If I do this what happens exactly?

I beleive that I can do something creative with the new tax to give me more tax credits so we'll be beter off together. Is this true and how do I do it? I don't want her suddenely getting taxed way more.

What way should I do this? Any comments or advice appreciated.
Thanks

lawred2

lg01 wrote: »

I got married last year and I now need to notify the revenue as I believe there are some tax benefits. I am a high earner, close to 100k. My wife is a lower earner, currently on 20k but could go to 30k this year if she gets a new job.

I need to write to the revenue and tell them I'm now married so they increase our tax credits. If I do this what happens exactly?

I beleive that I can do something creative with the new tax to give me more tax credits so we'll be beter off together. Is this true and how do I do it? I don't want her suddenely getting taxed way more.

What way should I do this? Any comments or advice appreciated.
Thanks

there is no increase in tax credits

You can take some of here unused lower rate credits but that's it

But as soon as she reaches 33k lower rate cutoff there are no benefits to either of you..

lg01

Hmm, I was definitely told there were tax advantages to getting married, as a married person you pay less tax. Is this not true? Perhaps my wording was incorrecrt.

I got married in April 2016. At the time my wife was not working, she only started working towards the end of the year. Can I take her credits from then retrospectively?

Just looking for any info on how I can get the amximum benefit.

lawred2

lg01 wrote: »

Hmm, I was definitely told there were tax advantages to getting married, as a married person you pay less tax. Is this not true? Perhaps my working was incorrecrt.

I got married in April 2016. At the time my wife was not working, she only started working towards the end of the year. Can I take her credits from then retrospectively?

you can take her PAYE credit for the period after April

you can also take any unused portion of her standard rate band

but when you're both working and she uses up all her standard rate band - there are no tax advantages to being married

The advantages come if your wife has little to no income. You can increase your take home.

Pawwed Rig

You benefit where your wife earns less than €24,800. Otherwise not really (unless you are bring in capital taxes which have loads of benefits).

irlcncrk

I think the term you're looking for is probably Joint Assessment, where you both share your tax credits.

I would advise you get some proper advise, but my understanding is that if your wife isn't meeting the thresholds to use all of her credits you'll get them.

Give your local tax office a call about it, they're always helpful whenever I've called them with queries.

Mrs OBumble

lawred2 wrote: »

you can take her PAYE credit for the period after April.

Nope. Only starts from the tax year after you marry.

lawred2

Mrs OBumble wrote: »

Nope. Only starts from the tax year after you marry.

ok - that's actually more accurate

but you can still claim a rebate back from revenue at year end if it's established that you would have been taxed less if joint assessed for the post marriage portion of the year

OP - it's all here - http://www.revenue.ie/en/tax/it/leaflets/it2.html