Getting Hitched

Highlighter75

HI folks. Simple question. Myself and my other half are both in the 40% income tax bracket. A. I right in thinking for income tax purposes, we'd be no better off?

Geuze

If you each earn above the 42k SRCOP, marriage makes no difference to income tax.

Of course, there are other benefits to marriage.

Highlighter75

https://www.boards.ie/discussion/comment/122248288#Comment_122248288

So I'm told.......

Xander10

https://www.boards.ie/discussion/2058355528/getting-hitched

Put it another way, there is no disadvantage to joint assessment.

If for example, a spouse went on maternity leave and lower income, there could be unused lower rate bands to transfer

Always opt for joint assessment when married. Career break, lay off, maternity, going part time - there are so many reasons one of your incomes could fall below €42k.

Also you only have to file 1 tax return instead of 2, makes it easier.

SureYWouldntYa

The only time separate assessment makes any sense is if both parties are self employed earning well over the standard rate cut off and prefer to keep tax payments separate for their own finances, but even then down the line there will likely come a few years where joint assessment will be preferred

appledrop

There is absolutely no need for you to be jointly assessed at the moment.

Yes if things change down the road you could look into it but no need to bother at moment.

https://www.boards.ie/discussion/comment/122264236#Comment_122264236

Bad advice. Joint assessment has to be requested by 31 March to apply for the year in question. I've seen plenty of tax overpaid because people didn't just make that one simple change. Which doesn't affect them either way at the time.

A lot of people think joint assessment can be back dated 4 years, like claiming tax relief on medical expenses. It absolutely can't.

appledrop

It's not bad advice, has worked for us for past 15 years!

As I mentioned it depends on individual circumstances and that should be taken into account.

https://www.boards.ie/discussion/comment/122266561#Comment_122266561

And if a couple's circumstances change after 1 April, and one of their incomes falls below the standard tax band threshold, they will needlessly overpay income tax in that year which could so easily be avoided by simply being jointly assessed.

And if they ask Revenue to backdate their joint assessment they'll be firmly told no.

Lenar3556

https://www.boards.ie/discussion/comment/122266561#Comment_122266561

Worked in what way?

There may be no particular benefit in being joint assessed based on the couples current circumstances. But circumstances change, and in that case there may be a significant benefit.
There is usually no reason not to opt for joint assessment - and it is a simple election to make.

Why would you propose not doing so?