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Wife PUP payment has taken all our TAX Credits???

  • 23-03-2021 10:22am
    #1
    eiei0
    Registered Users Posts: 419 ✭✭


    Hi

    Firstly I'll admit I know nothing about tax and credits ect

    Anyway wife had to take the PUP for a few weeks on and off due to her work situation, this morning I got an email saying new tax credit cert was on line,

    So basically we got something like 7k credits and it's down to 4.5, it's spilt so I get 75% and she gets the rest as I earn 3x what she does,

    My monthly tax credit is down €200 does that mean my take home will be down €200??

    She has zero tax credits??

    And how can the reduce our credits for 4 years by this amount when she didn't receive that much to begin with, I'll have to check but she maybe got 2-3k if the are reducing our credits by 2.5k per year for 4 years thats 10k that can't be right,

    Again sorry I know nothing I usually don't even look at my pay slip because you just have to pay tax nothing can be done about it, but dropping 200 a month extra on tax will be very hard to live with,

    Thanks


Comments

  • #2
    ari101
    Registered Users Posts: 2,835 ✭✭✭ari101


    This adjustment in 2021 relates to an estimate for a 2021 claim. If and when a 2021 social welfare claim is closed the credits should be adjust back up somewhat. There are threads on boards explaining this already maybe someone can link one with all the discussion here (damned if I can locate anything on mobile)...?

    The 2020 amounts will come off 2022 onwards.


  • #3
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    ari101 wrote: »
    This adjustment in 2021 relates to an estimate for a 2021 claim. If and when a 2021 social welfare claim is closed the credits should be adjust back up somewhat. There are threads on boards explaining this already maybe someone can link one with all the discussion here (damned if I can locate anything on mobile)...?

    The 2020 amounts will come off 2022 onwards.

    Think this is the one you were looking for :-

    https://www.boards.ie/vbulletin/showthread.php?t=2058157353&page=3


  • #4
    BPPM
    Registered Users Posts: 12 ✭BPPM


    Taxation of PUP received in 2021
    The DSP informs Revenue on a weekly basis of the amount of taxable PUP paid to each recipient. Then:

    any tax due is collected by reducing the person’s tax credits and rate band. To do this, Revenue ‘annualises’ the weekly amount of PUP. This is calculated by multiplying the weekly amount by 52. The annual tax credits and rate band are reduced by this amount.
    the adjusted tax credits and rate band are applied on a week 1 basis.
    the revisions are shown on the employee’s Tax Credit Certificate (TCC). A revised Revenue Payroll Notification (RPN) is made available to their employer.
    In most cases, there will be no additional tax liability at the end of 2021.

    Joint assessment
    You may be taxed under Joint assessment. If you have insufficient tax credits for this reduction to apply, your spouse or civil partner’s tax credits will reduce.


  • #5
    Tenger
    Moderators, Motoring & Transport Moderators Posts: 9,717 Mod ✭✭✭✭Tenger


    Does this also apply to those who received TWSS?


  • #6
    DmanDmythDledge
    Registered Users Posts: 883 ✭✭✭DmanDmythDledge


    Tenger wrote: »
    Does this also apply to those who received TWSS?
    Nope - TWSS was only 2020 and that’s being taxed 2022-2025


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