Tax for 1 working parent

Mr_Happy1

Hi everyone,

I am contemplating handing in my notice and leaving my job to take some time off for personal reasons. My wife works as a teacher and we were wondering how our tax credits would work if I was to be unemployed.

We have two dependants.

Would my wifes tax be significantly reduced due to me being unemployed?

relax carry on

Mr_Happy1 wrote: »

Hi everyone,

I am contemplating handing in my notice and leaving my job to take some time off for personal reasons. My wife works as a teacher and we were wondering how our tax credits would work if I was to be unemployed.

We have two dependants.

Would my wifes tax be significantly reduced due to me being unemployed?

Not enough info.

What are your gross incomes right now? Is this a short term thing or along term? Will you be claiming jobseekers benefit?

y0ssar1an22

Mr_Happy1 wrote: »

Hi everyone,

I am contemplating handing in my notice and leaving my job to take some time off for personal reasons. My wife works as a teacher and we were wondering how our tax credits would work if I was to be unemployed.

We have two dependants.

Would my wifes tax be significantly reduced due to me being unemployed?

she would get your personal tax credit of 1650. (ETA: you would likely have already used ~50% of this)

depending on how much you were earning, you may lose out on some of your 20% rate band.

you would also be entitled to the home carers tax credit of 1600. this can be reduced if you start claiming DSP payments:

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/home-carer-credit/index.aspx

so best case scenario, you are looking at a tax saving 1650 + 1600 = 3250.

Geuze

As well as the two tax credits 1650 + 1600, your wife would get an increased SRCOP.

It would increase by 9k, possibly saving 1800 in tax, depending on your incomes.

Calahonda52

You wont get any JS for 9 weeks if you just resign

y0ssar1an22

Calahonda52 wrote: »

You wont get any JS for 9 weeks if you just resign

if you can show that you were underpaid (vs market average. or not getting a pay rise in a number of years) for your current job you can go straight on JS.

Mr_Happy1

relax carry on wrote: »

Not enough info.

What are your gross incomes right now? Is this a short term thing or along term? Will you be claiming jobseekers benefit?

It will be for the foreseeable future. My wife is on 48k gross p/a and I am earning 75k gross p/a.

I was not aware I could go on jobseekers benefit. I have never been on it before so have no idea what that entails.

Mr_Happy1

y0ssar1an22 wrote: »

if you can show that you were underpaid (vs market average. or not getting a pay rise in a number of years) for your current job you can go straight on JS.

I have not received a salary increase since 2016, would this allow me to go straight onto jobseekers?

phantasmagoria

Did you try running some different scenarios on the Deloitte tax calculator

http://services.deloitte.ie/tc/

It is useful to know where you may stand.

Seve OB

Mr_Happy1 wrote: »

It will be for the foreseeable future. My wife is on 48k gross p/a and I am earning 75k gross p/a.

I was not aware I could go on jobseekers benefit. I have never been on it before so have no idea what that entails.

you must have a lot of money in the bank if you are the one thinking of jacking it in and not your wife

y0ssar1an22

Mr_Happy1 wrote: »

I have not received a salary increase since 2016, would this allow me to go straight onto jobseekers?

Left work voluntarily and without a reasonable cause

reasonable cause; if you can show you are getting underpaid. You can certainly argue the point re no pay rise. See if you can find industry average figures for your area.
some other work situation that 'forced' you to leave, bullying, etc.