# What would my tax credits increase to if wife stopped working?



## peterwilson (27 Mar 2013)

Hi
Im trying to work out if my wife would be better off working or not.

If I took her tax credits how much extra would I earn tax free?
Or is it that simple?

Thanks
pw


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## peterwilson (27 Mar 2013)

I just don't understand the revenue.ie website

"If both spouses or civil partners have taxable income, they can decide  which spouse or civil partner of them is to be the assessable spouseor  nominated civil partner and request their local Revenue office to  allocate the tax credits and standard rate band between           them in whatever way they wish. [PAYE tax credit, employment  expenses and the basic standard rate band          of €23,800  are non transferable.]"


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## Joe_90 (27 Mar 2013)

A married couple have standard rate cut off of 65,600 but the maximum either party can have is 41800.  So if you earn more than that you pay 41% either way.

If your spouse gives up work the you could claim her tax credit and the 9,000 increase in standard rate band, so it's 9,000 x 21% = 1,890 + 1650, so not that much.


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## deadlyduck (27 Mar 2013)

Excel (2007+) spreadsheet here: http://taxcalc.eu/monthlyss

You could also claim the stay-at-home carer credit (€810 pa) if your spouse is minding young children.


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## peterwilson (27 Mar 2013)

Joe_90 said:


> A married couple have standard rate cut off of 65,600 but the maximum either party can have is 41800.  So if you earn more than that you pay 41% either way.



Thanks Joe

Im on 50K

So (excuse the ignorance) I would pay 41% on the excess of 41,800?

What am I currently paying 41% on?
41,800 - 9000?



Joe_90 said:


> If your spouse gives up work the you could claim *her tax credit and the  9,000 increase in standard rate band*, so it's 9,000 x 21% = 1,890 +  1650, so not that much.



So 1650 is her tax credit?

So it'd be 1890 + 1650 would be what I'd gain from the increased band and tax credit?

Thanks for the help


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## deadlyduck (27 Mar 2013)

Assuming that you have the max possible SRCOP (spouses can split it evenly), you're currently paying 41% on 50000-41800=8200.
Your spouse would have tax credits of €1650 personal credit (you can take this if she stops working) and an employee credit (not available for self employed people) of €1650 (which you can't take if she stops working.
As per my own post, if your spouse stays at home minding children, you can then avail of the home carer credit worth €810.


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## vandriver (27 Mar 2013)

You can't claim both home carers allowance and increase in couples tax bands,just whichever is more beneficial.


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