# State Pension Contributory: wife's (qualified Adult) portion lodged directy- credits?



## Carrickfergu (14 Feb 2012)

I have a Contributory State Pension of €436.60 and in 2008 I was advised by the Revenue that if I had my wife's pension (qualified Adult) portion lodged direct to her account, I could get the necessary extra Credits. 

For the last 4 years I have been getting the benefit of that.

 I recently put in a claim for Medical expenses, and they have now informerd me that they will have to review the last 4 years, as they say I got incorrect advise at the time. 

Can they legally do that?


----------



## Black Sheep (14 Feb 2012)

I got the same incorrect information (on behalf of a friend) in 2007 when SW became obliged to pay the QA portion of pension to the QA. However as there was still a doubt in my head, on double checking I discovered the error in the info received.

You do not say if there is any written proof of this incorrect info.so you are possibly relying on a phone call.
I think it would be difficult to obtain any comeback against revenue, and they are seriously strapped for cash at present.  They are even delaying all refunds due.

As this is your pension based on your contributions alone you are taxed on the lot


----------



## my2leftfeet (14 Feb 2012)

There was a discussion about this on Joe Duffy recently. Some people very upset at being hit with repayment amounts. Apparently Revenue cannot refuse any offer - once you are making an effort to repay. So if you do get a bill - offer them €2 per week!


----------



## Joe_90 (15 Feb 2012)

You clearly have a substantial private pension to exceed the €40,000 / €36,000 exemption limits for people over 65.

What income did Revenue allocated your wifes PAYE Cr to on your cert of tax credit and standard rate cut off?


----------



## Black Sheep (15 Feb 2012)

From the OP's post his wife's PAYE credit was incorrectly allocated to the QA portion of his pension which is paid seperately to her


----------



## Carrickfergu (15 Feb 2012)

P.T.Cr. €3,300. PAYE T.Cr.€1,650 and Age T.Cr.€490. There are no Credits for my Spouse. My Tax Band is €41,800 from which they subtract €22,703 DSP Pension, leaving net €19,096.  The DSP Pension is taxed at 20% ie.€4,540 and substacted from the total Credits.


----------



## Black Sheep (16 Feb 2012)

I must be missing something here or I totally mis-understood your original query. 
So, what extra credits did you get for the past 4 years that now have been taken away


----------



## Carrickfergu (16 Feb 2012)

The last posted Crs. were from my Amended Tax Cr. Cert. 2012 dated 11/1/2012.    On 25/7/2008 I got  double P.T.Cr. €3,600 and double PAYE T.Cr. €3,600 and my Standard Rate Band was €54,800.  My Pay Slip is now reduced by €370 p.mth.  If they were to backdate this for 4 years, they would claim back €15,000.  As I said in my first posting an Official in the Revenue advised me in the matter in July 2008


----------



## Carrickfergu (16 Feb 2012)

The figures posted on 15/2/12 relate to the latest Tax Cr. Certificate 2012, which reduces my take home pay by €370. per month.


----------



## Black Sheep (17 Feb 2012)

As I suggested in my previous post they have allowed a PAYE tax credit for your wife (in error)  of 1800 for 2008 and 2009 +1650 for 2010 and 2011. 
They also allowed the increased SRCOP (in error). 
So they are now claiming that back


----------



## Carrickfergu (17 Feb 2012)

Thank you Black Sheep for your imput, but what I would to know now is, is there  an Amnesty attached to the Tax Credit Cettificate issued on the 30/12/2011, for previous years?


----------



## Black Sheep (17 Feb 2012)

When I spoke to the revenue a few weeks ago they told me they were dealing with pensioners who did *not* have pensions coded in (not taxed) from 2012 onwards.  When I asked about arrears they said again from 2012 onwards.
As you have already have received incorrect information I would be very wary as they seem to be taking a different stance to a slightly different situation.

Makes you wonder why bother paying correct taxes while those who didn't bother to pay on their pensions seem to be exempt from arrears


----------



## allthedoyles (17 Feb 2012)

Carrickfergu said:


> P.T.Cr. €3,300. PAYE T.Cr.€1,650 and Age T.Cr.€490. There are no Credits for my Spouse. My Tax Band is €41,800 from which they subtract €22,703 DSP Pension, leaving net €19,096. The DSP Pension is taxed at 20% ie.€4,540 and substacted from the total Credits.


 
Ask the tax office to use the exemption limits if they are more beneficial , which were as follows :

2008 = €40,000 ( balance taxed @ 40% )
2009 = € 40,000 ( balance taxed @ 40 % )
2010 = € 40,000 ( balance taxed @ 40 % )
2011 = € 36,000 ( balance taxed @ 40 % )
2012 = € 36,000 ( balance taxed @40 % )
Your tax credits above come to a maximum of €27,200 and balance taxed @ 20% .

The tax office will advise you which method is more beneficial .


----------



## Carrickfergu (17 Feb 2012)

Thanks Black Sheep and Allthedoyles for your imput. I am not very up on Tax matters, but when I retired in 1995 I reported my work pention and sorted out all my tax affairs. When I reached 65 I again called into them and gave them ALL my Social Welfare Pension figures. Because my finances were very straight forward, and I was making no changes to my income, I just left matters slide,until I noticed they were inserting a lesser amount for my State Pention. It gauls me to think that I was the one who advised the Revenue in 2007 and they screwed me for back taxes for 4 years. Now they are at it again. Should I consult a Tax Consultant?


----------



## Carrickfergu (19 Feb 2012)

Allthedoyles posted the Exemption Limits For 2008-2012 with the balanced taxed at
 40%.
You also said that my Tax Crs come to a maxium of €27,200 and the balance would be taxed at 20%.
Does that mean that an alternative method of assessing my tax liabilities would be as follows: my Office Pension plus my State Contributory Pension less €27,200 @ 20%.  Anyway how did you arrive at the figure of €27,200?


----------



## Joe_90 (19 Feb 2012)

€27,200 is your tax credits of €3,300 + €1,650 + €490 = 5,440 / 20% = €27,200.
This principle only works up to the correct standard rate cut off point.  
I don't think anyone will be able to give you a specific answer unless you give an approximate figure for your private pension.


----------



## Carrickfergu (19 Feb 2012)

Thanks Joe 90. What is the best way to calculate my tax liability, if my private pension is €35,000 and my only other income is DSP Pension is €22.,700


----------



## Joe_90 (20 Feb 2012)

Ya,
2012 Total Income €57,700
41,800 x 20% = 8,360
15,900 x 41% = 6,529
                      14,879
Less Credits        5,440
Income Tax due  9,439

Consider Marginal Relief 57700 - 36,000 = 21,700 x 40% = €8,680 

Your max Income Tax is €8,680


----------

