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Income tax question - should I be jointly or separately assessed?

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  • 04-05-2024 5:18pm
    #1
    mnagle027
    Registered Users Posts: 3 ✭


    Is there anyone who can help me understand what is best to do in my tax situation?

    I am married and am shortly due to return to work after maternity leave.

    I have been on unpaid mat leave since January of this year and will return to work in June. My OH has been working and earning but he will take a career break for the last 4 months of this year. Therefore both of us will work for some of the year but also not be earning during other periods.

    Are we better off to be assessed jointly or separately in 2024 for income tax purposes? Both of us would be well into the higher tax bracket.

    Any advice appreciated, thank you!!



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    #2
    ismat
    Registered Users Posts: 168 ✭✭ismat


    you can never be worse off by being jointly assessed.



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    #3
    nhg
    Registered Users Posts: 1,009 ✭✭✭nhg


    Jointly Assessed means that you can transfer the transferable amount of rate band & tax credits between spouses during the tax year. The income tax return (eForm 12 if PAYE only & eForm 11 if self assessed taxpayers) are submitted by the assessable spouse for both.

    Separately Assessed, you both have your own rate band & credits for the full tax year, after the year end you both submit you own income tax return. Once the Statement of Liability issues, which ever taxpayer has rate band and/or tax credit to transfer, writes to Revenue through My Enquiries asking revenue to transfer the available rate band and/or tax credit to the spouse. Following that an amendment Statement of Liability issues to the taxpayer who received the transfer of rate band and / or tax credits and a refund issues to their bank account.

    The final result is the same whether Joint or Separate Assessed.

    You can only apply to be Separately Assessed for 2024 between 1st October 2023 and 31st March 2024 - outside application deadline now.

    If you haven’t updated your civil status on your revenue record, if updated to married now you will automatically be Jointly Assessed for 2024 & prior full tax years (except year of marriage)



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