Wife unemployed - transfer tax credits?

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peteb

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Hi

I'm looking for a bit of assistance I cannot for the life of me get my head around explanations on revenue.ie and hoping some one can make it simple for me.............please!

My wife and I got married in February 2011. She was then made redundant in November 2012. And has been unemployed since. It doesn't look likely that she will get suitable work for the foreseeable while with the exception of something on the jobsbridge scheme.

Would it make more sense for me to take her tax credits? I get paid €38,000 annually. I just don't understand the difference between the various types of assessment and hoping someone can explain to an idiot please!
 
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There are 3 types of assessment:

Separate treatment - taxed as 2 single people with no transfer of tax credits
Joint - one spouse is taxed on the income of both spouses and tax credits/cut-off can be allocated between spouses
Separate assessment - each spouse taxed individually but at the end of the year can have the tax recalculated as if they were jointly assessed.

You cannot be jointly assessed in the year of marriage. You need to wait until the end of the year when you can both apply for a review of your tax liabilities. If you would have been taxed less if you were jointly assessed you will be due a refund.

You can elect to be jointly assessed from January 2013.
 
Sorry. I should have said we got married in 2011. Time flies!!! Just edited the post there.

So which is the best way to do it to use my unemployed wife's credits? And can I claim them back for this tax year? I see on the revenue's site that you have to say before March 31st for that year.

I did ring them last year to tell them we were married as I was trying to sort out the TRS on the house as she didnt buy it with me.
 
And presumably your wife was made redundant in November 2011 and not 2012?!

For this year the easiest thing to do is to register with PAYE anytime (see Revenue website). If you are jointly assessed you should be able to see both your and your wife's tax credits and allocate them accordingly. You will then be issued with a new certificate of tax credits and should see the benefit in your pay packet.

If you are not jointly assessed you'll have to wait until the end of the year and request P21 balancing statements (for both of you).

For 2011 you need to make a claim, jointly and in writing, to Revenue.
 
Thanks for that. Yes. November 2011. Getting ahead of my self there!

Is seperate assessment the best way to go here?
 
joint assessment - hopefully you will find that you are already set up that way
then its just a case of re allocating the credits/band
 
WindUp said:
joint assessment - hopefully you will find that you are already set up that way
then its just a case of re allocating the credits/band
Click to expand...

+1 to that.

If you're getting married couples rates of mortgage interest relief then you're probably being jointly assessed.
 
on the point of transferring tax credits - we are jointly assessed - my husband was self employed up until aug 2011 - partner with another guy... we finally went to accountant to sort out the tax affairs- his income tax returns and lo and behold through the door today we have been hit with a bill of 2500 - we have been told the liabilty is due because I was claiming his tax credits -
before i make a show of myself tomorrow when i ring the accountant - could this be possible - the shop was operating at a loss and still we owe this money -
did we go into this totally blind ?
 
If the shop was operating at a loss there should be no tax due there for him to use credits against so shouldn't be possible to claim his credits twice
 
thanks but i'm not at all well up on tax or credits - are you saying we should not be liable for this bill ? or we should because i was claiming the credits ?
I'm sorry but i really need to know whats happening as this bill is the last thing i need to worry about -
What should i be asking the accountant and then what shoudl i ask revenue about repayment options
 
People have individual tax credits -- under joint assessment it is possible to transfer personal tax credits and tax bands between spouses. Sometimes people make a mistake and claim the same credits for each spouse.

If the shop was operating at a loss you would not expect there to be any taxable income ; so no taxable income for him to use his credits against; therefore you should be able to use the credit against your tax
 
smeharg said:
+1 to that.

If you're getting married couples rates of mortgage interest relief then you're probably being jointly assessed.
Click to expand...

Well i rang them up last year to tell them we were married and then had the wife apply online for TRS and it increased. But then it went down after the budget in December because January was year 8 for me. And UB haven't updated their systems but thats another days post!

Thanks
 
smeharg said:
And presumably your wife was made redundant in November 2011 and not 2012?!

For this year the easiest thing to do is to register with PAYE anytime (see Revenue website). If you are jointly assessed you should be able to see both your and your wife's tax credits and allocate them accordingly. You will then be issued with a new certificate of tax credits and should see the benefit in your pay packet.

If you are not jointly assessed you'll have to wait until the end of the year and request P21 balancing statements (for both of you).

For 2011 you need to make a claim, jointly and in writing, to Revenue.
Click to expand...

I just logged on to PAYE Anytime and i can only see my own tax credits. What is my next move here? Ring Revenue and tell them I want to be jointly assessed?
 
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