Marriage and taxation

smzf

Hi everybody, my Wife and I got married last year and I'm hoping that I can get some advice regarding taxation, such as the best assessment option to pick from the following. Assessment as a single person, Separate assessment, Joint assessment/aggregation. Also any advice allocating tax credits. My salary would be 40k, her's 27. We're currently renting and have no large outstanding debts or assets.

namenotavailablE

Tax credits=> I'd split them equally. You each should have €1650x2= €3300

Standard rate cut off point=> I'd suggest that your spouse takes 27000 (ensuring that she's taxed at 20% on everything) and you take €38600.

Generally, joint assessment is most advantageous for married couples.

I've some useful tax related spreadsheets downloadable from the site indicated in my signature below or the 'About me' tab of my profile which might be of interest to you.

dmark25

Can I hijack this thread also and get some advice. My husband and I also got married last year. I earn €23500 and he earns €29500. What would be the best option for us.

namenotavailablE

Tax credits=> equally as per previous recommendation (€3300 each)

Standard rate cutoff point=> your incomes don't use the single person's cut-off point so you'll each receive a cut-off point which matches your income values i.e. €23500 and €29500 respectively

Again, in general the best option is joint assessment. It allows for transfer of tax credits should you go on maternity leave. If either individual income increases above 32800, you can gain a little too by sharing any unused cut-off point of the lower earner.