Husband getting wife's tax credits

S

shaking

Registered User
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If a mum decides to stay at home with the kids and gives her tax credits to her husband how much impact does it have on his take home pay? Assuming they're both in the higher tax bracket
 
Try www.taxcalc.eu to get an idea of how the both spouses versus one spouse earning situations compare. See the Revenue FAQ on married taxation: [broken link removed]. There are also numerous existing threads on married taxation that might be helpful.
 
Make sure that the husband claims home carer tax credit.It is 900 euro per year.If the wife has been working up til now she would not get the benefit of a full years tax credit until january 2009.For my husband it is about 70 euro per month extra in his wages
 
Also - make sure to claim all other applicable credits/allowances and request a P21 balancing statement at the year end making sure that Revenue have all relevant info about your situation just to make sure that you only pay as much tax as necessary.
 
thanks for the replies very helpful, not working out to be much of a difference doesn't exactly encourage the stay at home mum does it!
 
The individualisation of the tax bands introuced a few years ago by Charlie McCreevy is like a fine on 2-parent families where only one goes out to work

The main changes will be as follows:

1. The wife's PAYE credit will be lost as she no longer draws a salary.
2. A Home-carers credit of €900 can be claimed
3. The wife can transfer €9,000 of her tax cut-offs to the husband (the remainder is lost)

Obviously childcare costs are eliminated which is a benefit but by-and-large, it makes more financial sense to have both parents working.

Unless you breed like rabbits!
 
you can work part time and earn less than around 6,000 euro AND you will retain your PAYE tax credit ( up to amount you earn ) AND your husband can claim home Carer tax credit.
 
Just to clarify:

[broken link removed]
A reduced tax credit applies where the income is between €5,080 and €6,620 in 2007 and €5,080 and €6,880 in 2008.
Click to expand...
There are also some other qualifications outlined in that link.
 
shaking
db74s point is a valid one. If your wife earns even a miniscule salary i.e works part time for a few hours you can avail of her tax credits
 
ClubMan said:
Just to clarify:

[broken link removed]

There are also some other qualifications outlined in that link.
Click to expand...

Yes, there is a upper limit. "the tax credit available to married couples with combined incomes over €43,000 in the tax year 2007 and €44,400 in the tax year 2008"
 
Towger said:
Yes, there is a upper limit. "the tax credit available to married couples with combined incomes over €43,000 in the tax year 2007 and €44,400 in the tax year 2008"
Click to expand...
I presume that refers to married couples where both are earning? After all we are a married couple with one earner (me) earning more than €44,400 in 2008 and get the full credit.
 
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