Taxation

Julianr

Hi there, just a question,
If I have an income of 50000/year and my wife has an income of 26000/year, would it be better if we choose to get taxed as a joint

Happy4all

Julianr wrote: »

Hi there, just a question,
If I have an income of 50000/year and my wife has an income of 26000/year, would it be better if we choose to get taxed as a joint

Joint assessment & separate Assessment will give you the same net result.

Separate Treatment won't. no transfer of unused rate bands etc

The Diddakoi

Julianr wrote: »

Hi there, just a question,
If I have an income of 50000/year and my wife has an income of 26000/year, would it be better if we choose to get taxed as a joint

Won’t make much difference, as both your incomes are over the 20% tax rate.

Happy4all

The Diddakoi wrote: »

Won’t make much difference, as both your incomes are over the 20% tax rate.

not quiet right:)

relax carry on

Julianr wrote: »

Hi there, just a question,
If I have an income of 50000/year and my wife has an income of 26000/year, would it be better if we choose to get taxed as a joint

Joint assessment will allow you to transfer 9000 euro of your wife's unused rate band to yourself meaning 1800 euro saving in tax for you for the year.

namenotavailablE

If jointly assessed, your wife could transfer part of her unused standard rate band (€9000 of it) to you.

You'd see an increase in your take home pay (and it would have no impact of your wife's take-home pay). On an annual basis, the increase would be €1800.

If separately assessed, you'd need to wait until the end of the year to request a review of your taxes to get the refund.

EDIT: relax wins the race!

Julianr

namenotavailabl wrote: »

If jointly assessed, your wife could transfer part of her unused standard rate band (€9000 of it) to you.

You'd see an increase in your take home pay (and it would have no impact of your wife's take-home pay). On an annual basis, the increase would be €1800.

If separately assessed, you'd need to wait until the end of the year to request a review of your taxes to get the refund.

EDIT: relax wins the race!

Thanks everyone for the answers, i understand now.

Heisenburg81

Julianr wrote: »

Hi there, just a question,
If I have an income of 50000/year and my wife has an income of 26000/year, would it be better if we choose to get taxed as a joint

Are you getting taxed as a grass or hash joint?

exaisle

Rule of thumb...you won't be any worse off by opting for separate assessment, but you might be if you optfor separate treatment.