Separate Assessment vs Joint Assessment

T

Techie

Registered User
Messages
15
Hi Folks,

Based on the figures given below, Is my understanding on Separate Assessment and Joint Assessment correct?

If yes, it appears to be the Joint Assessment attracts more tax !!!
If not, How is it actually calculated? Also Is there any other way I could reduce the tax? i.e by transferring her rate bands and tax credits to me?

Separate Assessment
My Income = €59,750
Tax: €42,800 @ 20% €8,560.00
Tax: €16,950 @ 40% €6,780.00
Personal & PAYE credit €3,300.00
Tax payable €12,040.00

Spouse income = €27,000
Tax: €24,800 @20% €4,960.00
Tax: €2,200 @40% €880.00
Personal & PAYE credit €3,300.00
Tax payable €2,540.00

Total tax payable (Husband & Wife) €14,580.00

Joint Assessment
Total income = 59,750+27,000 €86,750.00
Tax (Max Cap): €67600 @ 20% €13,520.00
Remaining €19150 @ 40% €7,660
Married & PAYE credits in total €6,600.00

Total tax payable (Husband & Wife) €14,580.00

Difference €0

Thanks,
Techie
 
Last edited:
Thanks McGibney. It was a silly mistake. I'have updated the figures now and the difference is 0. Still wondering what could be the benefit of being as Joint accessed?
 
Techie said:
Still wondering what could be the benefit of being as Joint accessed?
Click to expand...
Given that you don't lose by being jointly assessed, I thought the question should be what are the drawbacks of being separately assessed?

The key one is that if either spouse suffers a sharp unanticipated drop in their income, they may lose out tax-wise if they are separately assessed at that point.
 
Under separate assessment you wouldn't have the benefit of the 42,800 cut off point throughout the year only after the end of the year when your spouse transfers their unused cut off point (maximum of 9000) to you. During the year you would be allocated 33,800 each.
 
My spouse turns 65 shortly and will have a pension of €20k. When he is 66 he will also receive the state pension of about €12k. So his total income will be €32k.

I also turn 65 next year and I am in receipt of a small pension of about €300 per annum. I expect to also receive the state pension when I turn 66.

Our combined income at that point in time should be c €44k

Does it matter if we are jointly or separately accessed? Based on a combined income of €44k will we have to pay any tax?
 
T McGibney said:
Given that you don't lose by being jointly assessed, I thought the question should be what are the drawbacks of being separately assessed?
Click to expand...
If a married couple had two incomes. One much smaller than the other. Could the person on the smaller income qualify for a medical card if the other did not qualify. If so, is it better to be separately assessed in this instance?
 
SoylentGreen said:
If a married couple had two incomes. One much smaller than the other. Could the person on the smaller income qualify for a medical card if the other did not qualify. If so, is it better to be separately assessed in this instance?
Click to expand...
I'm confused by your question. Joint or separate assessment is a tax issue, not a social welfare or specific medical card eligibility issue.
 
SoylentGreen said:
If a married couple had two incomes. One much smaller than the other. Could the person on the smaller income qualify for a medical card if the other did not qualify. If so, is it better to be separately assessed in this instance?
Click to expand...

I am fairly surely medical card eligibility takes into account household income that said there can be circumstances such as where there is a significant disability where 1 spouse has a medical card and the other doesn't. The basis of your tax assessment has no bearing on it.
 
So you can lose by being Separately Assessed but you can't lose by being Jointly Assessed for Tax purposes.

Is that an accurate statement?

I really need an answer on this question?
 
monagt said:
So you can lose by being Separately Assessed but you can't lose by being Jointly Assessed for Tax purposes.

Is that an accurate statement?

I really need an answer on this question?
Click to expand...
I'd regard it as accurate anyway. Others may disagree though.
 
Hi All, just married and would like some clarification on this...
Techie said:
Spouse income = €27,000
Tax: €24,800 @20% €4,960.00
Tax: €2,200 @40% €880.00
Personal & PAYE credit €3,300.00
Tax payable €2,540.00
Click to expand...

Should this person be paying tax@40% on an income of €27000?
 
I didn't know that was possible. Knew you could allocate tax credits but thought tax bands were fixed.

Only asking as I'm trying to decide if my wife and I should be jointly assessed.
My income €36000
Spouse's income €19000

Also trying to decide if I could avoid 40% by increasing pension allocations
 
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