Separated taxation

jmmy1234

Hi All not sure I am in the right place but here it goes. I was married and separated from my partner in 2008 but we never legally separated untill we started the process this year. Over the last 3 years I would have used my soon to be ex's unused tax credits to offset my own tax but all of a sudden last month revenue came to me looking for this money back saying that I was listed as seperated on their system. I asked the question "if that is the case then why were they granting my requests each year to use the unused credits" to which I got "We should not have granted it".

My question is can they just take this back even if it was given to me by them. On one of the payments I never even requested them to be used they just did it?????

F1ngers

jmmy1234 wrote: »

Hi All not sure I am in the right place but here it goes. I was married and separated from my partner in 2008 but we never legally separated untill we started the process this year. Over the last 3 years I would have used my soon to be ex's unused tax credits to offset my own tax but all of a sudden last month revenue came to me looking for this money back saying that I was listed as seperated on their system. I asked the question "if that is the case then why were they granting my requests each year to use the unused credits" to which I got "We should not have granted it".

My question is can they just take this back even if it was given to me by them. On one of the payments I never even requested them to be used they just did it?????

Of course they can take the money back.
It wasn't yours in the first place.
It is your responsibility to ensure that you are paying the correct taxes, they sent you out your allowances(with mistakes) and you didn't correct them(for three years) - they have now noticed their error and require monies owed.

jmmy1234

You are missing the point. I am not separated so I after ringing and discussing it with them asked for the credits to be used which they did.

Pat Mustard

jmmy1234 wrote: »

You are missing the point. I am not separated so I after ringing and discussing it with them asked for the credits to be used which they did.

The people on the Taxation forum are likely to have more exposure to this type of question, OP.

Pro Hoc Vice

F1ngers wrote: »

Of course they can take the money back.
It wasn't yours in the first place.
It is your responsibility to ensure that you are paying the correct taxes, they sent you out your allowances(with mistakes) and you didn't correct them(for three years) - they have now noticed their error and require monies owed.

I'm not sure its that clear cut, the couple while not living together remain married, the rights if one against the other for support remains. The couple cannot divorce for a number of years in ireland, I may stand corrected on this, but as long as the wife knows the score and maintenance is paid etc., then I wonder is there any issue.

"Taxation in subsequent years

Depending on their circumstances, separated/divorced spouses may choose to be taxed either as a married couple or as single persons after the year in which they separate. The payment of maintenance and the type of maintenance payments are important in deciding which tax arrangement will apply."

From http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/sep_divorce_income_tax.html

"If you are the assessable spouse, you are entitled to the married person’s tax credit and double rate bands for the full year in which you separate. You are taxed on your own income for the full year as well as your spouse’s income for the year up until the date of separation.

If you are the spouse who was not assessable, then you will be taxed on your own income from the date of separation. You will be entitled to the full single person’s tax credit and taxed under the single rate bands. If there are legally enforceable maintenance payments then you may choose instead to continue to be taxed as a married couple."


"Can a separated couple opt to remain taxed as a married couple?

Yes, a separated couple can opt to be treated as a married couple for income tax purposes if:

They are both resident in the State and
Maintenance payments are made under a legally enforceable arrangement.
The couple must submit a joint election if they wish to avail of this option. The election must be made in writing before the end of the tax year and must be signed by both parties. If such an election is made the maintenance payments are ignored i.e. the spouse making the payments does not get a tax deduction for them and the spouse who receives the payments is not taxable on them.

Where both spouses have income, separate assessment will apply i.e. tax credits and rate bands will be apportioned between the spouses, subject to a review at the end of the year to transfer any unused tax allowances or rate bands.

Where only one spouse has income the full tax credits and rate bands will be given to that spouse.

For details and examples of the different types of assessment see Leaflet IT2 (Taxation of Married Persons)."

http://www.revenue.ie/en/personal/circumstances/separation-divorce.html#section9

It will all OP depend on the facts.

godtabh

its possible for a couple to share credits. Its possible your husband asked for his credits back and revenue didnt update their files. Either way i'd say you are still liable

James Jones

I don't know much about taxation but I do know that you cannot be separated by Revenue. This is a process you enter into voluntarily with your ex and is dealt with by the Family Law courts. They should not have accepted that your ex was separated from you without a Separation agreement or Judicial Separation. By doing so, I believe they might well be in breach of the Equal Status acts so notify them by using the form HERE. It does not cost and you do not have to hire legal representation.

barman linen

Not an expert but you do need to make the declaration to the tax authorities/ If your spouse is now doing some retrospective tax returns they will be entitled to the credits.

To offset this - if you have children - and they stayed overnight with you for one night per year at a minimum - you could be entitled to the one parent family tax credit which should reduce the amount owed.