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
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
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