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Tax Credits Query

  • 29-01-2020 10:23am
    #1
    Clare in Exile
    Registered Users, Registered Users 2 Posts: 90 ✭✭


    Hi. My query relates to tax credits and the sharing of them. I'm married, and while out of employment I shared my tax credits with my spouse. Now I have returned to employment on a short-term contract (will conclude in a few weeks, so just under a month in duration). My question is this - should I transfer my tax credits back to myself for the duration of my current employment, or is it more financially advantageous to just leave them with my spouse as my period of paid employment is so short?

    Thanks for any replies/opinions...


Comments

  • #2
    lmcwh
    Registered Users, Registered Users 2 Posts: 14 ✭lmcwh


    In my opinion, and I’m no expert, I’d leave them with your husband.

    You will be taxed fully but if you take some credits from your husband now, his wages will drop on the next pay packet as they will claw back extra tax from him. And also going forward he’ll pay more tax as his credits will be reduced.

    At the end of the year you should do a Statement of Liability request and any overpayment will be refunded


  • #3
    IRtax
    Registered Users, Registered Users 2 Posts: 25 ✭IRtax


    Clare in Exile wrote: »
    Hi. My query relates to tax credits and the sharing of them. I'm married, and while out of employment I shared my tax credits with my spouse. Now I have returned to employment on a short-term contract (will conclude in a few weeks, so just under a month in duration). My question is this - should I transfer my tax credits back to myself for the duration of my current employment, or is it more financially advantageous to just leave them with my spouse as my period of paid employment is so short?

    Thanks for any replies/opinions...

    You have €26300 cut offs at 20% which you can’t transfer to your spouse for the year and you will receive a paye tax credit of up to €1650 depending on what you earn that cannot be transferred to your spouse ( this will let you earn €8250 gross for the year without paying paye tax) if you were claiming social welfare etc this may reduce credits / cut offs that you have available.


  • #4
    allthedoyles
    Registered Users, Registered Users 2 Posts: 6,893 ✭✭✭allthedoyles


    Its early in the year , so if you are going to transfer some , now is the time . Estimate now , what you expect to earn in 2020 , and then transfer 20% of that amount in tax credits .


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