Child Maintenance Credits

chazwazza

Hi,

I am calculating the tax for an individual who is providing a court bound child maintenance of €50 per week to his ex wife. He is currently separated. can someone clarify if i am correct in the assumption that if the indicidual is earning approx €2000 per month before tax, and tax is calculated on €2000 - €200. So the €200 comes off the gross and the tax is calculated on the balance €1800.

I am aware of his standard cut off and additional tax credit.

Thanks

Mr. Incognito

If it is on foot of a legally enfoceable seperation agreement then it is wholly deductible.

amen

just a silly question but why €200 per month ?
if he is paying €50 per week that is €2600 per year where as €200 per month is only €2400 leaving a short fall of €200 ?

chazwazza

SetantaL wrote: »

If it is on foot of a legally enfoceable seperation agreement then it is wholly deductible.

Thanks for the reply - yes it is on the back of a legally enforceable separation agreement. So it is ok to calculate on the previous example?

chazwazza

amen wrote: »

just a silly question but why €200 per month ?
if he is paying €50 per week that is €2600 per year where as €200 per month is only €2400 leaving a short fall of €200 ?

amen - thanks for the reply - your correct about the 50 per week. I used it as a basic example though so not 100% accurate. Thanks though

chazwazza

SetantaL wrote: »

If it is on foot of a legally enfoceable seperation agreement then it is wholly deductible.

SetantaL - i have just been told that he is legally bound to pay for maintenance of €50 per week - but he was never married to the girl so the whole separation point is a grey area. WHat is the actual stance on this.

Mr. Incognito

If they weren't married then it's maintance to the children which is not tax deductible in any case.

The reason it is deductible is S1025 in the TCA which provides for maintance payments to the spouse on foot of a seperation from marraige.

Sorry- he gets no relief for these payments.