Marriage Taxation

[irmarkie]

Hi There,

So the wedding day is arriving! I understand that for the year of marriage, both people are taxed as singles and from the next tax year, they have a choice of single, joint or separate assessment.

My question to you is that if both partners are currently both paying in the 42% bracket, is there likely to be any increase in combined after tax pay due to marriage circumstance? I see that the 42% cut off for dual income families is 64K, but this is simply double what the single cut off is of 32K and the marriage tax credit is double the single tax credit, so doesn't this mean than our combined after tax will simply be the sum of current individual after tax payments?

Thanks in advance

 

[bacchus]

My question to you is that if both partners are currently both paying in the 42% bracket, is there likely to be any increase in combined after tax pay due to marriage circumstance?

My understanding is that there is none in your case.

 

[coinfused]

Rang Revenue about the same issue (similar salaries) last year and was told there is no difference, transferring tax credits only pays off if one spouse is earning less than current income threshold for paying tax or in certain cases paying at lower rate of tax. Bummer.

 

[bazermc]

is there likely to be any increase in combined after tax pay due to marriage circumstance?

Simple answer no! It would be grossly unfair to give a tax advantage to a married couple over two single people. Of course elect for joint assessment now because it will save doing it some day down the road when it will be advantageous i.e. when one spouse does not use up all there SRCOP or credits

 

[ClubMan]

Simple answer no! It would be grossly unfair to give a tax advantage to a married couple over two single people.

But they do - e.g. (a) married with both working with one on 20% and (b) the other on 42% or married with one working - in both cases they are treated more favourably than a similar non married couple as far as I know.

 

[Monaghan Fan]

If you go to the Revenue office with all your details they will advise . You will need to bring PPS numbers and earning details and they will talk you through it as they are now very helpful.


Monaghan Fan

 

[asdfg]

But they do - e.g. (a) married with both working with one on 20% and (b) the other on 42% or married with one working - in both cases they are treated more favourably than a similar non married couple as far as I know.

In this case the OP stated that both were paying tax the the higher rate.

So no benefit now but as bazermac says

elect for joint assessment now because it will save doing it some day down the road when it will be advantageous i.e. when one spouse does not use up all there SRCOP or credits

 

[bazermc]

In this case the OP stated that both were paying tax the the higher rate.

So no benefit now but as bazermac says

Exactly, and as a election for joint assessment must be made before April in the tax year it will apply it does not give much of a window of opportunity.

 

[ClubMan]

In this case the OP stated that both were paying tax the the higher rate.

I was referring to bazermc's point about Revenue not being able to do certain things because it might be inequitable to one set of people (e.g. married couples) over others (e.g. unmarried) - this is irrelevant and there is no fundamental requirement that the tax regulations be equitable to all!

 

[bazermc]

I was referring to bazermc's point about Revenue not being able to do certain things because it might be inequitable to one set of people (e.g. married couples) over others (e.g. unmarried) - this is irrelevant and there is no fundamental requirement that the tax regulations be equitable to all!

Clubman you are correct, there is an inequity between married couples over two singles say living together where the married couple can avail of JA where advantageous and the unmarried couple cannot, it is only time before such issue is challenged in the courts. There is a court case underway at the mo invloving two married woman who cannot avail of JA as there marriage is not recognised in the state