If wife was to quit ...

mathie

Hi
My wife and myself both work and are both in the higher tax bracket.
If my wife were to give up work would I get any of her benefits?

Is it just 1650 extra tax free on my earnings that I could claim?

Thanks
M

van_beano

mathie wrote: »

Hi
My wife and myself both work and are both in the higher tax bracket.
If my wife were to give up work would I get any of her benefits?

Is it just 1650 extra tax free on my earnings that I could claim?

Thanks
M

There's €1200 Homer Carers tax credit if you have children under 18

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/home_carers_tax_credit.html

padraig.od

van_beano wrote: »

There's €1200 Homer Carers tax credit if you have children under 18

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/home_carers_tax_credit.html

Would I be able to claim this if my wife was claiming job seekers?

mathie

van_beano wrote: »

There's €1200 Homer Carers tax credit if you have children under 18

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/home_carers_tax_credit.html

Thanks
So that would mean I'd get 1650 + 1200 = 2850 extra in tax credits?

relax carry on

mathie wrote: »

Hi
My wife and myself both work and are both in the higher tax bracket.
If my wife were to give up work would I get any of her benefits?

Is it just 1650 extra tax free on my earnings that I could claim?

Thanks
M

You would be able to use 9000 euro of her rateband which translates into 1800 euro. You would also be able to use her 1650 personal tax credit of 1650. You may also be able to claim the home carers tax credit of 1200 euro.

This assumes you are jointly assessed for tax purposes.

Tow

And your Higher Rate Cut Off Point goes up to 43,550

van_beano

padraig.od wrote: »

Would I be able to claim this if my wife was claiming job seekers?

Yes, it's not mean's tested, it was added automatically to my tax credits the following year after I got married, I rang Revenue to confirm that it wasn't a mistake as I'd never heard of this tax credit before.

van_beano

mathie wrote: »

Thanks
So that would mean I'd get 1650 + 1200 = 2850 extra in tax credits?

That's correct, added to your €3300 tax credits already it'd make it €6150 tax credits in the year. As others have mentioned, your tax bands also change.

1874

Its only of use if the other person is not working already, to give up work entails losing thousands in earned income to make this benefit work, unless giving up work is already on the cards and there are children who would otherwise have to be minded by a paid service, in that case it could work out worthwhile.
Id calculate it either on paper or using an online calculator, as there was damn all difference when I worked it out.

mathie

So currently I have tax credits of 3300 (1650 + 1650).
Is that totally tax free?

I rang Revenue and they said that would go from 3300 to 6600 if my wife quit.
So does that mean 6600 before any taxation kicks in?

thanks

van_beano

mathie wrote: »

So currently I have tax credits of 3300 (1650 + 1650).
Is that totally tax free?

I rang Revenue and they said that would go from 3300 to 6600 if my wife quit.
So does that mean 6600 before any taxation kicks in?

thanks

The USC is taxed on the full gross amount including the tax credits. The tax credits are used to reduce PAYE contributions. Not sure where PRSI comes into it

Sunny Dayz

padraig.od wrote: »

Would I be able to claim this if my wife was claiming job seekers?

Your wife shouldn't be claiming job seekers if she's giving up work to stay at home with the kids.
However depending on what your earnings are, you could look into Family Income Supplement.

van_beano

Your wife could claim back her PRSI contributions for a year without being means tested as whatever it's called JSA or JSB. If your wife quits her job though I think there's a waiting period before she can claim. After a year she'll be means tested against your income

namenotavailablE

My Excel spreadsheet URL="http://taxcalc.eu/monthlyss"]http://taxcalc.eu/monthlyss[/URL might help with this. You would need to set the marital status field to 'Married 1 income- with children' for the typical tax credits and standard rate band to be set correctly.