Single Parents Child Tax Credit

Kornelia

Can someone shed light to this? My ex wants me to relinquish my single parents child tax credit to him. Im on 40k and he is on 60k. its 1650 tax credit. I was told I have 330 EUR more in my pocket at the end of the year. He reckons, he will have 2500 Eur. Is that true?
If I relinquish it to him, can I request it back in future?
Our child is 6 years of age.
TIA for you advice.

Immy

If you earn 40 and he earns 60 then you will both get the same benefit from the extra 4K in cut off and 1650 credit.

Someone is giving him wrong info.

Kornelia

Immy wrote: »

If you earn 40 and he earns 60 then you will both get the same benefit from the extra 4K in cut off and 1650 credit.

Someone is giving him wrong info.

i thought when you are earning over 40k you are in a different tax bracket and you will benefit more from the 1650 credit?

Immy

Kornelia wrote: »

i thought when you are earning over 40k you are in a different tax bracket and you will benefit more from the 1650 credit?

No

The 1650 is a tax credit so that’s the amount of the benefit you get €1650.

As a single person you can earn €35,300 at 20% and the balance is at 40%.

As a single parent you get an extra 4K, so you can earn €39,300 at 20%.

Hence the 40k is enough to get any benefit.

The person earning 60k would get the same benefit as the person earning 40k.

screamer

It’s not the tax credit it’s the standard rate cut off point which is increased for single parents. This means you can earn more at 20%. However cut off points and tax credits can only be transferred between spouses as far as I know, I’d be hesitant to give it away. Contact citizens information they should be able to help with the calculations.

Kornelia

screamer wrote: »

It’s not the tax credit it’s the standard rate cut off point which is increased for single parents. This means you can earn more at 20%. However cut off points and tax credits can only be transferred between spouses as far as I know, I’d be hesitant to give it away. Contact citizens information they should be able to help with the calculations.

Thanks so much will do.

Kornelia

Immy wrote: »

No

The 1650 is a tax credit so that’s the amount of the benefit you get €1650.

As a single person you can earn €35,300 at 20% and the balance is at 40%.

As a single parent you get an extra 4K, so you can earn €39,300 at 20%.

Hence the 40k is enough to get any benefit.

The person earning 60k would get the same benefit as the person earning 40k.

Right now it makes sense. Thanks so much for explaining that.

Immy

Kornelia wrote: »

Right now it makes sense. Thanks so much for explaining that.

You’re welcome

You have enough income to get the full benefit so I wouldn’t give it over to him.

Dravokivich

screamer wrote: »

It’s not the tax credit it’s the standard rate cut off point which is increased for single parents. This means you can earn more at 20%. However cut off points and tax credits can only be transferred between spouses as far as I know, I’d be hesitant to give it away. Contact citizens information they should be able to help with the calculations.

This credit is for either parent, once they are separated. Can only be claimed by one and the parent with custody has rights to it. It can be transferred by them to the other parent.

Immy

screamer wrote: »

It’s not the tax credit it’s the standard rate cut off point which is increased for single parents. This means you can earn more at 20%. However cut off points and tax credits can only be transferred between spouses as far as I know, I’d be hesitant to give it away. Contact citizens information they should be able to help with the calculations.

There is also a tax credit of €1650.

Only 1 parent can avail of the benefit, the primary care giver, however they can allocate the benefit to the other parent should they wish.

ooter

Slightly off topic but If the qualifying parent isn't availing of the credit and refuses to fill/sign the form to transfer the credit to the other parent there's nothing the other parent can do which is totally wrong in my opinion.

Kornelia

Dravokivich wrote: »

This credit is for either parent, once they are separated. Can only be claimed by one and the parent with custody has rights to it. It can be transferred by them to the other parent.

and if I transfer it to him can I claim it back at some stage?

Kornelia

ooter wrote: »

Slightly off topic but If the qualifying parent isn't availing of the credit and refuses to fill/sign the form to transfer the credit to the other parent there's nothing the other parent can do which is totally wrong in my opinion.

yes i agree. if the other parent can benefit, why not transfer it over...

Purple Mountain

ooter wrote: »

Slightly off topic but If the qualifying parent isn't availing of the credit and refuses to fill/sign the form to transfer the credit to the other parent there's nothing the other parent can do which is totally wrong in my opinion.

AFAIK the person who has the majority of care for the child gets the credit only.
The non full time parent can't get it anyhow.

Kornelia

Purple Mountain wrote: »

AFAIK the person who has the majority of care for the child gets the credit only.
The non full time parent can't get it anyhow.

i think you can tweak that document to suit. child has to be with the other parent for 100 something days or over to avail of it but who comes out to check???

Dravokivich

Kornelia wrote: »

and if I transfer it to him can I claim it back at some stage?

He'd need to relinquish it.

Dravokivich

Purple Mountain wrote: »

AFAIK the person who has the majority of care for the child gets the credit only.
The non full time parent can't get it anyhow.

That's child benefit.

The tax credit can be used by either, but only claimed once at a time.

Kornelia

Dravokivich wrote: »

He'd need to relinquish it.

right I see. thanks.

splinter65

Purple Mountain wrote: »

AFAIK the person who has the majority of care for the child gets the credit only.
The non full time parent can't get it anyhow.

They can have it given to them by the custodial parent. Here’s the form indicating same:

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/documents/spcc1.pdf

Dravokivich

Kornelia wrote: »

right I see. thanks.

I'd expect it's something rarely done. I've got it and wouldn't be inclined to give it up.

Kornelia

splinter65 wrote: »

They can have it given to them by the custodial parent. Here’s the form indicating same:

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/documents/spcc1.pdf

thanks for that.