Married in January - Tax Credits?

rinleezz

Good evening everyone,

We got married in January this year and just like with any other tax credit, we were expecting to receive our updated tax certs with the higher tax rate band and tax credit soon after, but I'm having a hard time getting a confirmation and revenue are taking FOREVER to reply to an enquiry.

From my understanding, our personal tax credits will double and our 20% tax band will increase to 49k only from next year, and since we are both working full time in decent jobs, we're going to get a refund for the tax we would not have paid this year due to being married. Is that correct?

It's just a little confusing, as your tax credits just update on the fly, but something big like getting married only kicks in next year? We were hopeful to bring more money home this year as, well, everyone's struggling these days(except the rich) so I'm looking for a clarification to get our expectations in check.

Will be very grateful for any input.

nhg

There are no additional rate band or tax credits for being married and both spouses working!

The rate band is €49K if only one spouse working but €80K if both working - single rate band by 2 (€40K x 2)

The only difference is that if you are jointly assessed you can transfer a certain amount of rate band and tax credits between spouse during the year.

The year you get married is known as Year of Civil Union in which you are still taxed as 2 single people. You may be due Year of Marriage Relief after the year end if one of your incomes is less than €40,000 resulting in one spouse having unused rate band which the other spouse could use if their income is over €40,000 and paying income tax at 40%

rinleezz

https://www.boards.ie/discussion/comment/120246193#Comment_120246193

I admittedly confused myself with the tax rate bands. If there is no additional tax credit, then the below is very misleading. If that 3550 tax credit is divided between spouses, shouldn't it say "married couple" rather than "person"?

https://i.imgur.com/zdymS1N.png

nhg

https://www.boards.ie/discussion/comment/120247634#Comment_120247634

Absolutely

Ginger83

https://www.boards.ie/discussion/2058284463/married-in-january-tax-credits

Is this automatic the year after you get married or do you need to inform revenue?

downtheroad

https://www.boards.ie/discussion/comment/120347769#Comment_120347769

You need to request a year of marriage review by sending a MyEnquiry request to Revenue, after the tax year has ended. Hopefully you will get a nice lump sum tsc refund in January 2024 (depending on you and your spouses 2023 incomes).

Ginger83

https://www.boards.ie/discussion/comment/120347777#Comment_120347777

Thanks. What if a person got married a few years ago? Is it possible to review and amend the last few years?

downtheroad

https://www.boards.ie/discussion/comment/120347785#Comment_120347785

Not possible to request joint assessment going backwards. 31st March is the cut off date for applying for joint assessment, so get the request in quick for 2023.

nhg

https://www.boards.ie/discussion/comment/120347785#Comment_120347785

When you don’t update your civil status for a few years, even if you opt for Separate Assessment for the current year (needs to be applied for before 31st March) the review years between current year and year of civil union are assessed on a Jointly Assessed basis provided both are resident in those years otherwise Separate Treatment for review years.

If both resident & have submitted income tax returns for those years a new review will run and an amended Statement of Liability will issue along with any refunds if due, underpayments will amalgamate also. A review can only go back 4 years.

Example: Year of marriage 2016. Taxpayers want to be separate assessed. Inform revenue February 2023.

2023 Sepatate Assessed & future

2022 Joint Assessed - review ran

2021 Joint Assessed - review ran

2020 Joint Assessed - review ran

2919 Joint Assessed - review ran

2018 Jointly Assessed

2017 Jointly Assessed

2016 Year of Civil Union - too late to request Year of Marriage Review as outside the 4 year limit

Ginger83

https://www.boards.ie/discussion/comment/120348140#Comment_120348140

Thanks that makes a lot of sense