Tax credits for a married couple

MarioLuigi

I'm a bit out of date with the tax credits/cut off on a married couple, hoping someone can comment on the below example.

Married couple jointly assessed, husband working in a PAYE job, salary in the higher tax bracket.

Wife not working, cares for newborn at home.

I'm happy that the husband can take €9,000 of cut off from the wife so joint cut off will be €44,300.

The husband has married person tax credit of €3,300, PAYE credit of €1,650 and wife can avail of home carers tax credit of €1,500, so total tax credits jointly are €6,450, is this correct?

Stratvs

You're not really out of date ! You have it correct. All joint credits incl. the Home Carer Credit & the €44,300 standard rate cut off will be allocated to the husband.

MarioLuigi

Thank you, I thought maybe there might be an issue with using the €9k cut off and also availing of home carers tax credit.

Stratvs

MarioLuigi wrote: »

Thank you, I thought maybe there might be an issue with using the €9k cut off and also availing of home carers tax credit.

No you can get the €44,300 and the HC Credit. You can't avail of the higher cut-off for say where the spouse had some income but still qualified for the HC Credit. You then get either the higher cut off point for the spouse income or the lower cut off and the HC Credit whichever would be more beneficial.

Stratvs

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/home-carer-credit/home-carer-tax-credit-and-your-spouse-or-civil-partner.aspx

Some additional info here on the HC Credit and dual incomes for reference.

MarioLuigi

Stratvs you're a gentleman and a scholar.