Tax credit allocation.

koppite1970 · 01-06-2026 12:03PM #1

My wife is currently claiming invalidity pension, and I am in full time employment. Can I claim my wife's tax credits and how is this done? We are jointly assessed by revenue, but on the revenue site I do not have the option to allocate tax credits. We each have 4000 euro in tax credits. I have got an an underpayment of tax notification for the past 3 years from revenue and they reduce my tax credits for the year as a result. It seems as though Im doing something incorrectly as to how our credits are set up. Can any advise on how I should be approaching this?

Geuze · 02-06-2026 11:05PM

Are you sure that you are looking in the correct page in your Revenue account?

CramCycle · 02-06-2026 11:26PM

Go to myaccount, click on "Manage your tax for the current year", then work down to divide tax credits

koppite1970 · 03-06-2026 07:15PM

I came across this today which might explain it.

In Ireland, you cannot divide your tax credits between an Invalidity Pension and another regular employment or source of income. Tax credits are attached to your Personal Public Service (PPS) number, but your pension and your job will be handled as separate employments for tax calculation purposes.

Because you cannot split them, the Department of Social Protection simply notifies Revenue of your taxable pension amount, and Revenue adjusts your tax credits against your overall tax liability.

While you can't divide them directly, the system operates as follows to ensure you aren't double-taxed:

Automatic adjustment: Your taxable Invalidity Pension is reported to Revenue, which will automatically take it into account when adjusting your yearly tax credits

Employee Tax Credit: When claiming a taxable social welfare payment (like the Invalidity Pension), you are also entitled to the Employee Tax Credit (formerly known as the PAYE tax credit) to reduce your tax bill

Total Tax: If your Invalidity Pension is your only income, you likely won't pay any income tax because your personal tax credits and the Employee Tax Credit will cover the total amount of tax owed. However, if you have a second job, your employer and the Department of Social Protection will both factor in your tax credits to ensure you are taxed properly across your total income

CramCycle · 03-06-2026 08:37PM

https://www.boards.ie/discussion/comment/124522006#Comment_124522006

Sorry, I thought you were getting over taxed but you weren't being paying tax on the pension yet. Have you made sure your partners credits are split appropriately divided. Have a read of revenue.ie but it appears you already have your partners credits (4000euro for a married couple, between you, not each), but you may be entitled to others if you have to take care of your partner as well, read through them.

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

You

Tax credit allocation.

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