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Assessable Spouse Election Form - how to fill in form

  • 04-03-2021 11:47am
    #1
    Owlet
    Registered Users Posts: 100 ✭✭


    My husband and I are filling out the assessable spouse election form for the first time.

    He earns 100,044 pa. I will earn approx 10,000 (estimate for now - depends on covid situation) this year.

    I am new to the Irish tax system so quite confused about how to best allocate tax credits and the standard rate band.

    In case needed - he receives child benefit for our two children. Not sure if I will be eligible for home carer credit at the end of the year or not as depends on if I can return to work later this year. Husband is PAYE I am not.

    Can anyone offer advice? Or point me to a handy easy to read online guide?

    Thanks.


Comments

  • #2
    relax carry on
    Registered Users Posts: 4,071 ✭✭✭relax carry on


    Owlet wrote: »
    My husband and I are filling out the assessable spouse election form for the first time.

    He earns 100,044 pa. I will earn approx 10,000 (estimate for now - depends on covid situation) this year.

    I am new to the Irish tax system so quite confused about how to best allocate tax credits and the standard rate band.

    In case needed - he receives child benefit for our two children. Not sure if I will be eligible for home carer credit at the end of the year or not as depends on if I can return to work later this year. Husband is PAYE I am not.

    Can anyone offer advice? Or point me to a handy easy to read online guide?

    Thanks.

    You state that you aren't PAYE. Are you a sole trader registered for income tax? If so you should become the assessable spouse. Allocate the max transferrable rate band to your spouse. That's 9000 euro of yours you can give to your husband. Keep your about half of your personal credit and transfer the remainder to him. If your taxable earnings are likely to be 10000 euro for the year, then you may get a portion of the credit at year end when you file your annual tax return.

    https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/home-carer-credit/home-carer-tax-credit-rates.aspx


  • #3
    Owlet
    Registered Users Posts: 100 ✭✭Owlet


    Thanks that's really helpful. Much appreciated.

    I work remotely for a UK company doing ad hoc project work. I am aware I may be liable for UK income tax also (depending on how much I earn) but that I would get a credit for what I pay due to double taxation arrangements. Sorry I didn't want to over complicate things - I just meant I'm not hired by an Irish employer who would deduct tax at source.


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