# Difference between joint & separate assessment for married couples



## dockingtrade (19 Nov 2009)

Can someone tell what the difference is. From looking at examples & working out my own situation I cant see a difference. Why are there 2 options if this is the case?

If both are working


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## huskerdu (19 Nov 2009)

If both are working and both are paying the higher rate of tax, then there is no difference. 

If one is not earning, or paying tax at the lower rate, there is an advantage to a joint assessment and sharing tax credits.


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## dockingtrade (19 Nov 2009)

i came across this link since my post

http://www.revenue.ie/en/tax/it/leaflets/it2.html

again no difference in the example between separate and joint assessment
even with one on the lower rate. So im just wondering why are there 2 options is it if one person is not working as I cant see the difference if both are working regardless of eaches income.

Im taking separate & joint as aspposed to single

thanks


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## Gervan (19 Nov 2009)

Not all married couples pool all their finances. My sister, for example, does not know what her husband's income is. If they made a joint return, both spouses would have to share their information. If you submit for separate assessment, you would get any refund specific to you, but would not be informed of the other spouse's position.


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## dockingtrade (19 Nov 2009)

Gervan said:


> Not all married couples pool all their finances. My sister, for example, does not know what her husband's income is. If they made a joint return, both spouses would have to share their information. If you submit for separate assessment, you would get any refund specific to you, but would not be informed of the other spouse's position.


 
I see


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## huskerdu (19 Nov 2009)

You seems to be convinced that there is a logical answer to this question, but we all know that that is not always the case, when dealign with the government !

Back in the old days, only joint assessment was possible, and when a woman got married, her PPN was taken off her, and she was issued with a new one, which was her husbands number with W at the end. Also, her tax free allowances were taken off her and given to her husband automatically. 

Then women, to the shock and horror of all, decided to demand to be treated like full members of society with rights and  things, and demanded the right to be assessed for tax in their own right, even though they were married. Many thought that this would mean the downfall of Irish society but amazingly, we survived, and now couples have a choice of how to be assessed for tax.


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## dockingtrade (19 Nov 2009)

im trying to find out if there is a difference/advantage financially between separately & jointly assessed for married couples. The answer is finnacially there is no differnce, yes?


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## huskerdu (19 Nov 2009)

dockingtrade said:


> im trying to find out if there is a difference/advantage financially between separately & jointly assessed for married couples. The answer is finnacially there is no differnce, yes?



For some married couples there is a difference. If one is earning very little and can share their tax credit with their spouse, then there is an advantage to joint assessment. I know that the particular examples which you have seen
have no difference and this is the case for many couples, but there are many couples that use joint assessment to reduce their  tax. However, mostly the advantage is for couples where only one works.


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## helllohello (19 Nov 2009)

back in the bad old days, i lost my pps no when i got married and became an extension of my husband.  it was never a problem until i went to look for a tax clearance certificate - i cant get one, only my husband can.  its ok for me to pay tax every week, but i am not tax compliant beause i am not a real person, only an add-on of my other half, I found this very insulting.


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## z107 (19 Nov 2009)

There appears to be three methods of assessment, joint, single and separate. Please refer to this post:
http://www.askaboutmoney.com/showpost.php?p=815346&postcount=23

If a spouse is an employee of their husband's or wife's company, they should opt for separate assessment.


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## asdfg (19 Nov 2009)

Anything here the figures relate to 2006 but the principal is the same


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## allthedoyles (19 Nov 2009)

umop3p!sdn said:


> There appears to be three methods of assessment, joint, single and separate. Please refer to this post:
> http://www.askaboutmoney.com/showpost.php?p=815346&postcount=23
> 
> .


 
As said above , there are differences and the differences will always depend on individual circumstances and earnings .

afaik , it is the duty of the tax office to assess the situation ,and  always give the tax payer , whichever option is most beneficial .


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## annR (23 Nov 2009)

Can someone explain to me exactly how it works to share tax credits.  What does that mean?  Sorry probably sounds like an obvious question.  I am earning on the lower level of tax and my husband is on the higher level.


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