Will it pay me to go back to work part time on min wage

[corkwoman]

Hi,

I've been a stay at home mom for the last 10 years, and am looking to get back to work. Looking at a job at the moment which is part time (5 days 3 hrs per week at min wage), so paying me about 135 per week before tax etc.

Myself and my husband are trying to work out whether or not this is going to actually cost us money or not by the time we consider tax etc.

Currently, he earns 78k per year, we are jointly assesed and we also have the carers allowance as I am a stay at home mother.

Could someone help us work out the figures here, and how this affects his tax and my potential tax ?

Im looking at this from the point of view of getting back into the employment ladder, so while the returns may be low, at least it gets me back into the workforce.

Thanks,
Jean

 

[Nutso]

Even if your husband has the married tax credit, you will still have your PAYE tax credit of 1650.

If you are earning 135 per week x 52 = 7020 annually, so your tax credit will be capped to 20% of this, i.e. 1404.

You will not pay any tax, PRSI or USC on your income at this level, however you will lose the home carer's tax credit so your total gain in income over the year would be 7020 - 800 = 6020.

 

[vandriver]

When you lose the 800 home carers tax credit,you can claim an increase in the standard rate tax band,so your spouses wages would benefit by €7020*21%-€800.