Tax treatment of unearned income

NickyK2017

Hi, hope someone can help with the following. If tried using the online calculators but not sure if accurate.
A married couple have significant income from investments but very little earned income. How is this income taxed. I'll give an example.

Joint investment (rental / dividends) income 70k. One is self employed but small income, say 10K. How much tax is payable per year?

Calahonda52

impossible to tell from the figures given as you don't know what the allowable deductions are on the rental income.
Could be big interest allowable

NickyK2017

Thanks for the reply.
Say both figures are nett of allowable expenses (i.e. the taxable income would be 80k)

namenotavailablE

Assuming the 70K is split evenly and one person has an extra 10K for a trade/ profession, here's a rough guide:

Person 1 total gross tax on 45K: 10940 [35300 x 20%; 9700 x 40%]
Person 2 total gross tax on 35K: 7000 [35000 x 20%

Total gross tax: 17940
Deduct:

Total tax credits (2 personal credits and 1 earned income credit) = 1650x2 + 1350x1 = 4650
Total net tax 13290
Add:
PRSI @ 4% on all income = 3200
USC @ various rates c 2250

Sum of all deductions: 18740

Possibly a bit off on the tax as there may be some standard rate band shareable.

NickyK2017

namenotavailabl wrote: »

Assuming the 70K is split evenly and one person has an extra 10K for a trade/ profession, here's a rough guide:

Person 1 total gross tax on 45K: 10940 [35300 x 20%; 9700 x 40%]
Person 2 total gross tax on 35K: 7000 [35000 x 20%

Total gross tax: 17940
Deduct:

Total tax credits (2 personal credits and 1 earned income credit) = 1650x2 + 1350x1 = 4650
Total net tax 13290
Add:
PRSI @ 4% on all income = 3200
USC @ various rates c 2250

Sum of all deductions: 18740

Possibly a bit off on the tax as there may be some standard rate band shareable.

Perfect, thank you.