Marriage and tax credits

This is it

Myself and the other half are getting married next year and I'm wondering is it best to be joint or separately assessed?

What are the pros and cons?

We'd both be earning into the higher tax bracket.

I'm not sure what other information is relevant? She's public sector if that matters...

CramCycle

https://www.boards.ie/discussion/2058370465/marriage-and-tax-credits

If you are both well into the higher tax bracket, then it doesn't really matter. We are jointly assessed but only because my partner doesn't want to bother having to do the returns separate, there is not monetary benefit.

Pros: One return, if one of you is earning in a different bracket than the other, you get a bit more back than being separate. If either of you take a career break, lose your job or go on maternity leave, it probably would be worth it.

Cons: If you are untrusting it might be an issue but in that case, you probably shouldn't be married, gives one person control for want of a better word.

Calahonda52

Interesting question.

One that has occurred to me

A earns well into higher tax bracket

B does not.

Under joint assessment IIRC, the household after tax income will be higher, but will be reflected in A's pay check.

So how does B get his part of the higher after tax income

This is it

https://www.boards.ie/discussion/comment/122653706#Comment_122653706

Thank you for that! My soon to be wife actually plans on job sharing from next year, for a few years. In that case a joint assessment would make sense where I'd use some of her credits

Gregor Samsa

https://www.boards.ie/discussion/comment/122653772#Comment_122653772

The idea behind it is that in marriage, what's mine is yours, so the concept of B getting "his" part doesn't really exist. The couple are collectively benefiting from it. I know that this isn't always borne out in practice.

The practical answer to you question - assuming that A and B don't operate a joint account and/or pool resources either entirely or based on some kind of equitable split - is that A calculates and transfers the appropriate cash to B after each paycheque. It's anyone's guess how common this practice would be.

This is it

https://www.boards.ie/discussion/comment/122653821#Comment_122653821

Literally just had the discussion, I would of course transfer the extra to her. Better in her pocket than the tax mans 😊

Calahonda52

Thanks, so do the math for single and joint and see the difference?

A&B have a joint bank account for all the household stuff which they fund in equal measure but both have seriate bank accounts for their own stuff: clothes, hobbies etc