Joint Assessment - Unemployed Spouse

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ThomasO1

Registered User
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Trying to get my head around how myself and wifes income tax was payable in 2024 and can't seem to make sense of it in my own head so hoping for some assistance. Worth noting that will be requesting Statement of Liability next week when have the option to.

I was in full employment for the year - gross earnings of e65,800
Wife was only employed for a few weeks - gross earnings of e2,940
She then claimed JB for full 39 weeks at e104 weekly rate (End of Feb to end of Nov roughly)

We are jointly assessed and I'm aware that the Jobseekers payment will have reduced her tax credits and rate bands but wondering if anyone can offer a definitive (or as close as possible) calculation and explanation of income tax? I feel I have probably paid correct tax amount for the year but not sure how the JB payments will impact on our tax position.

Appreciate any help!
 
ThomasO1 said:
We are jointly assessed and I'm aware that the Jobseekers payment will have reduced her tax credits and rate bands but wondering if anyone can offer a definitive (or as close as possible) calculation and explanation of income tax? I feel I have probably paid correct tax amount for the year but not sure how the JB payments will impact on our tax position.
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Doesn't your Revenue myAccount already reflect the tax treatment of your joint affairs?

The tax treatment of JB is outlined here:

Taxation of Jobseeker's Benefit and Jobseeker's Benefit (self-employed)

This page explains the taxation of Jobseeker's Benefit and Jobseeker's Benefit (self-employed)
www.revenue.ie www.revenue.ie
 
ClubMan said:
Doesn't your Revenue myAccount already reflect the tax treatment of your joint affairs?

The tax treatment of JB is outlined here:
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I’m not sure of that. I can’t see it anywhere so not too sure what the treatment is. Maybe I’m just being useless!!
 
She would have taxable income from Jobseekers Benefit of 104 -13 per week for 39 weeks.

So 3549 taxable.

To account for tax @ 20% on this amount revenue will deduct 20% of this from her tax credits.

So her tax credits are reduced by 709.80 for 2024.

They also reduce her 20% tax band by 3549 euro. This won't effect her as she did not earn enough to be taxable at 40%

Because her total tax liability is not enough to fully utilise her PAYE tax credits, she effectively pays no tax and doesn't use up any of her personal tax credits.

You can then benefit from her unused personal tax credits.
 
S class said:
She would have taxable income from Jobseekers Benefit of 104 -13 per week for 39 weeks.

So 3549 taxable.

To account for tax @ 20% on this amount revenue will deduct 20% of this from her tax credits.

So her tax credits are reduced by 709.80 for 2024.

They also reduce her 20% tax band by 3549 euro. This won't effect her as she did not earn enough to be taxable at 40%

Because her total tax liability is not enough to fully utilise her PAYE tax credits, she effectively pays no tax and doesn't use up any of her personal tax credits.

You can then benefit from her unused personal tax credits.
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Ahh ok, that makes more sense to me then.

Personally I paid roughly 13,800 income tax for the year. Would that sound about right based on the info given above? Maybe you won't know and appreciate the information already provided!
 
ThomasO1 said:
Ahh ok, that makes more sense to me then.

Personally I paid roughly 13,800 income tax for the year. Would that sound about right based on the info given above? Maybe you won't know and appreciate the information already provided!
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€13.8K income tax only (which would seem high to me) or income tax plus USC plus PRSI (which would look about right depending on whether or not you have children and maybe qualify for the home carer tax credit etc.).

You should be able to estimate the correct deductions using your gross of €68.5K and the aforementioned taxable JB figure of €3,549 using a tax calculator such as this:


It may incorrectly deduct some USC/PRSI from the taxable JB figure but that shouldn't affect the overall result that significantly.
 
2024 rough calculation...

You would have 20% tax band of 51000
You would have your personal tax credits + your wife's personal tax credits + your PAYE tax credits 1875 x 3 = 5625

So
51000 @ 20%. =. 10200
14800 @ 40% = 5920

16120 - 5625 credits = 10495
 
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S class said:
2024 rough calculation...

You would have 20% tax band of 51000
You would have your personal tax credits + your wife's personal tax credits + your PAYE tax credits 1875 x 3 = 5625

So
51000 @ 20%. =. 10200
14800 @ 40% = 5920

16120 - 5625 credits = 10495
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Might the home carer tax credit also be available if there are children?
 
Home Carer Tax Credit possibly available? We have never looked into this before. Have looked into this though and wondering can we claim for this retrospectively for 2024 or would we have to check if only available from 2025? I am the assessable spouse since marriage in 2023 so wondering do I claim this online or through my wifes ROS account?
 
If she was mostly home minding children then likely you are eligible for Home Carer credit.

Claiming Home Carer Tax Credit

This page explains how to claim Home Carer Tax Credit
www.revenue.ie www.revenue.ie

"You must claim within four years after the end of the tax year to which the claim relates."
 
ThomasO1 said:
Home Carer Tax Credit possibly available? We have never looked into this before. Have looked into this though and wondering can we claim for this retrospectively for 2024 or would we have to check if only available from 2025? I am the assessable spouse since marriage in 2023 so wondering do I claim this online or through my wifes ROS account?
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You can backdate claims for additional credits to which you are entitled for the previous 4 tax years - i.e. 2021-2024 in 2025.
 
Definitely something worth looking into. I suppose the big question is whether I am better off to leave as is when completing Income Tax Return or claim for the Home Carer credit as can see you cannot claim this and the increased standard rate band although I would assume looking at our situation we would be likely better off to claim the Home Carer credit..

The option to claim is not there when I look at 2023 but that is likely due to the fact we only got married halfway through that year so assuming from 2024 onwards it will be available to claim?
 
ThomasO1 said:
Definitely something worth looking into. I suppose the big question is whether I am better off to leave as is when completing Income Tax Return or claim for the Home Carer credit as can see you cannot claim this and the increased standard rate band although I would assume looking at our situation we would be likely better off to claim the Home Carer credit..
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I think revenue check which option is better for you and then apply the better one.

So definitely claim the carers credits.

I claimed carers credits in the past but they were not applied as the tax band was better.
 
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S class said:
I think revenue check which option is better for you and then apply the better one.

So definitely claim the carers credits.

I claimed carers credits in the past but they were not applied as the tax band was better.
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Ah ok, understood.
I’ll file the return next week and claim the carer credits and see how things go from there.
 
S class said:
I think revenue check which option is better for you and then apply the better one.

So definitely claim the carers credits.

I claimed carers credits in the past but they were not applied as the tax band was better.
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Ah, good point. Forgot that it's one or the other.
 
ThomasO1 said:
you cannot claim this and the increased standard rate band
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I was checking this out.

"You cannot claim both the increased Standard Rate Cut-Off Point for dual income couples and the Home Carer Tax Credit. Your Revenue Office will help you to determine which is better for you."

It's seems that it's only when both spouses have income, that you cannot claim the increased rate band and carers credits.

If your wife is unemployed and has no income you might qualify for both.

You would be in the "Married or in a civil partnership, one spouse or civil partner with income" category.

Thinking back, I didn't qualify because even though I was unemployed I had investment income above the allowed level.

Either way definitely apply, Revenue will determine which is better for you.
 
S class said:
I was checking this out.

"You cannot claim both for dual income couples and the Home Carer Tax Credit. Your will help you to determine which is better for you."

It's seems that it's only when both spouses have income, that you cannot claim the increased rate band and carers credits.

If your wife is unemployed and has no income you might qualify for both.

You would be in the "Married or in a civil partnership, one spouse or civil partner with income" category.

Thinking back, I didn't qualify because even though I was unemployed I had investment income above the allowed level.

Either way definitely apply, Revenue will determine which is better for you.
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That’s one thing I wasn’t sure on actually. She was in employment in Jan/Feb but even between the small income from that and her Jobseekers Benefit her total income was only 7,000 ish so would fall below allowed level for full rate.

I’ll apply anyway and see which works out better but think in any case it’s looking to me like I’ve probably overpaid for the year based on what has been said here.
 
Managed to complete return today. What has the rough timeline been this year for receiving SOL back?
Appreciate all the help in here!
 
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