Joint Assessment

dilo1992

Hi,

My husband & I are looking into getting into Joint Assessment.
I read on revenue web that we need to nominate Assessable Spouse. if we don’t the revenue will automatically nominate the better earning one, which is my husband. I wonder should we do it any other way ? Someone once told me I should split it, but I am lost in the process.
My husbands earnings are 46,000 annually, mine 27,800 (before tax)

Any advise really appreciated

wally1990

dilo1992 wrote: »

Hi,

My husband & I are looking into getting into Joint Assessment.
I read on revenue web that we need to nominate Assessable Spouse. if we don’t the revenue will automatically nominate the better earning one, which is my husband. I wonder should we do it any other way ? Someone once told me I should split it, but I am lost in the process.
My husbands earnings are 46,000 annually, mine 27,800 (before tax)

Any advise really appreciated

You should change your standard rate cut off point only

You should move 8300 of yours to your husband

This means your husband will save 1660 a year in tax this bringing that money into your household so an extra 138 per month in his wages

The tax credits should remain the same because your paying tax at 20% and by making changes to that, you'd increase your tax bill but his would decrease by the exact same so literally no point on the tax credits

However defo change the Standard rate cut off point and get 138 move Into the house so ask the Revenue to move 8300 worth of yours to him

Also, you cannot backdate this so tough luck on previous years but act now for this year and going forward

138 per Month in your case

josephsoap

Hi can anyone clarify if one spouse has earnings of 30K pa and the other spouse has earnings of 50K pa, does the partner on the 20% rate unused rate band of 5300 transfer over to the spouse on the 40%?

So the 40% tax payer will have paid 5300 @ 40% when it should have been taxed @ 20% - which in theory would result in a refund of €1060

Or have I totally misinterpreted the revenue website

On checked again is the above limited to €26300 earnings of the lower earning partner ?

relax carry on

josephsoap wrote: »

Hi can anyone clarify if one spouse has earnings of 30K pa and the other spouse has earnings of 50K pa, does the partner on the 20% rate unused rate band of 5300 transfer over to the spouse on the 40%?

So the 40% tax payer will have paid 5300 @ 40% when it should have been taxed @ 20% - which in theory would result in a refund of €1060

Or have I totally misinterpreted the revenue website

On checked again is the above limited to €26300 earnings of the lower earning partner ?

Up to 9000 euro of one spouses rate band can be moved to the other spouse. If you have 5300 that hasn't been used then it can transfer over to other spouse. If that spouse has had at least 5300 of their income taxed at the 40% rate then it now can be taxed at the 20% rate instead resulting in a refund of 1060 euro.

searockb

Hi,
Some great info above.

My wife earns €76k and I earn €56k we are jointly assessed.
Up until last year we used to split tax credits and tax band allowances equally between us.
This year due to a company takeover revenue have changed things.
Now all the personal tax credit has been moved to me and my wife has €0.
Also my rate band has been increased to €44.3 k and my wife's reduced to €26.3k.
In the first 2 fortnightly pay slips this year I was up €70 and wife was down €140.
Can anyone explain this discrepancy? We would prefer to split everything but are not sure what the best thing to do is.
Thanks for advice

relax carry on

searockb wrote: »

Hi,
Some great info above.

My wife earns €76k and I earn €56k we are jointly assessed.
Up until last year we used to split tax credits and tax band allowances equally between us.
This year due to a company takeover revenue have changed things.
Now all the personal tax credit has been moved to me and my wife has €0.
Also my rate band has been increased to €44.3 k and my wife's reduced to €26.3k.
In the first 2 fortnightly pay slips this year I was up €70 and wife was down €140.
Can anyone explain this discrepancy? We would prefer to split everything but are not sure what the best thing to do is.
Thanks for advice

Split everything 50/50 again as soon as you can. If you can do it, do it on cumulative basis. You'll end up with an underpayment but your wife will have an overpayment. Not sure why the switch occurred.

wedger

HI,
I have a new job with a salary of €54,300 and my wife has earnings of just €5,995 a year.
We are just married what is best option here for us?
Thanks in advance