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how to divide tax credits when married

  • 19-10-2010 08:08PM
    #1
    lukk
    Closed Accounts Posts: 6 ✭


    Hi guys,

    Just wondering whats the best way to divide tax credits between myself and my wife. I earn 60k and she is on 30k. Should I get all her credits or just part of it or? What are the rules here? Been trying to google it, but no luck.

    THanks,
    Luke


Comments

  • #2
    Bookkeeper09
    Registered Users, Registered Users 2 Posts: 266 ✭✭Bookkeeper09


    Because your wife has the income to absorb her own tax credits...there would be no tax saving (to you as a couple) by you taking your wives tax credits/lower rate band.


  • #3
    koxy
    Registered Users, Registered Users 2 Posts: 17 ✭koxy


    Single standard rate band is €36,400 each so if your wife is only earning €30k you could transfer €6,400 of her lower band to you meaning you would pay tax at 20% on €42,800 instead of being taxed at the higher rate after €36,400 ! She does use all her credits though so no point transferring these !


  • #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    Surely the simple way around this is to do a joint personal tax return- your wife gets the benefit of her credits, and you gain from the balance of her lower tax band? Its less messy.


  • #5
    lukk
    Closed Accounts Posts: 6 ✭lukk


    hey guys really appreciate all your answers :) thanks a lot!

    so yeah, we are going to leave tax credits as they are, but it seems that we should transfer lower band - can we just call the revenue and ask them to do that for us or do we need to play with forms etc?

    secondly, what is a "joint personal tax return" - can you explain pls or at least give a link, again google sucks

    cheers,
    Luke


  • #6
    koxy
    Registered Users, Registered Users 2 Posts: 17 ✭koxy


    Ya just phone your local revenue office or the PAYE query helpline is 1890 777 425, have both your pps' ready and they should change the bands there and then and issue you a new tax clearence certificate.

    I don't see how doing a joint personal tax return is any easier as this would mean filling in a form at the end of every tax year to get a tax refund, when as long as you are both PAYE employees and not self employed, one simple phone call would sort it out straight away !


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  • #7
    kennyb3
    Registered Users, Registered Users 2 Posts: 6,724 ✭✭✭kennyb3


    lukk wrote: »

    secondly, what is a "joint personal tax return" - can you explain pls or at least give a link, again google sucks

    cheers,
    Luke

    http://www.revenue.ie/en/tax/it/leaflets/it2.html


  • #8
    galah
    Registered Users, Registered Users 2 Posts: 2,215 ✭✭✭galah


    dunno if this is any good to you, but once you're set up for the PAYE online service by revenue, you can adjust the tax bands yourself, no need for phone calls etc.

    They'll then send out a new tax cert once you've submitted your choices.

    I am still amazed how simple it actually was! (that and the fact that when you submit your health expenses online (Med1 etc), it took only 3 days for the claim to be assessed and the refund lodged in my account!

    Say what you will, but in this respect, the 'government' is actually quite efficient!


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