Married Couple SRCOP

meadow2010

Hi Guys

Quick question for you.

Husband earns €16,919 in 2007, Wife earns €52,567. Tax paid €6218 all in 2007.

For 2007 a married couple with two incomes was at a rate of €43000 @20% with an increase of €25,000 max and balance at 41%
Married Couple both spouses with Income€41,000 @ 20% with increase of €23,000 max.
Balance @ 42%€43,000 @ 20% with increase of €25,000 max.
Balance @ 41%
Total salary €69,486.00 Total tax paid €6218

So my question.

Should the tax be calculated as €43,000+ 25000 = 68000 @20% and 1486 @ 41% or should it be 43000+16919 = 59919 @ 20% and 9567 @ 41%

cheers for any help

Mr. Incognito

Neither

Wife 52,567
Hub 16,919
Total 69,486

Taxed at (43,000+16,919) 59,919 @ 20% = 11,984
Balance 9,567 @ 41% = 3,922

Taxable Income 15,906

Less Allowable Credits*
Personal Credit x 2= 3,520
PAYE Credit x 2= 3,520
Total Credits 7,040

Taxable Income Less Credits equals final tax = 8,866

*This supposes that you are both in PAYE employment and have not claimed other credits such as flat rate expenses, rent relief etc etc.

betonit

Mr. Incognito wrote: »

Neither

Wife 52,567
Hub 16,919
Total 69,486

Is it not

Wife 43000 @20%
wife 9567 @42%
hub 16919 @20%

??

Dublin Muppet

Thats right but I think its @ 41% and not 42%

betonit

its all clear now.. misunderstanding

Mr. Incognito

That was my mistake. The increase to the SRCO is capped at the second spouse's income.