# Separate Assessment vs Joint Assessment



## Techie (12 Oct 2016)

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


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## T McGibney (12 Oct 2016)

Techie said:


> If yes, it appears to be the Joint Assessment attracts more tax !!!


That makes no sense, so there's a gap in your figures somewhere. You don't lose by being jointly assessed.


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## T McGibney (12 Oct 2016)

€19150 @ 40%  = €7,660.00 not €7,851.50


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## Techie (12 Oct 2016)

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?


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## T McGibney (12 Oct 2016)

Techie said:


> Still wondering what could be the benefit of being as Joint accessed?


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.


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## Daenis (12 Oct 2016)

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.


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## Kimmagegirl (23 Jan 2017)

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?


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## SoylentGreen (25 Jan 2017)

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?


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?


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## T McGibney (25 Jan 2017)

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?


I'm confused by your question. Joint or separate assessment is a tax issue, not a social welfare or specific medical card eligibility issue.


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## Daenis (25 Jan 2017)

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?



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.


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## monagt (2 Jun 2017)

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?


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## T McGibney (2 Jun 2017)

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?


I'd regard it as accurate anyway. Others may disagree though.


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## monagt (2 Jun 2017)

T McGibney said:


> I'd regard it as accurate anyway. Others may disagree though.



Thanks T


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## Chris36 (16 Jun 2017)

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



Should this person be paying tax@40% on an income of €27000?


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## torblednam (16 Jun 2017)

Chris36 said:


> Hi All, just married and would like some clarification on this...
> 
> 
> Should this person be paying tax@40% on an income of €27000?


Only if they have transferred the maximum €9k of standard rate band to their spouse.


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## Chris36 (16 Jun 2017)

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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