Married taxation - some cases and queries

Wow, are you serious???. I am just worried about that Tax credit my husband has been claiming for his other child, eventhough his ex is married to someone else he still supports his child & he has planned to ring to come off that tax credit, will they not question that when they see we are married now??.
 
Aisling2323 said:
YES! YOU ARE! A LITTLE! Ring the revenue. Fill out a tax form and both of you sign it. You will each keep your seperate PPS numbers. Inform revenue of your new married name. When you submit your P60's for last tax year inform them that you are married. You will be entitled to a lot of tax back!!!!!!! that is the good news. Your rates are completely different as a married couple. They move from 34k to 68k in 2007 (2006 figures were a little different, can't remember exactly) i'll do a calculation and let you know what the figure is ..
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If both spouses are paying high rate tax then I don't think there is any benefit (or penalty) in opting for joint/aggregated married taxation. Perhaps you can clarify what you think they will gain with regard to a 2006 tax refund?
 
sorry my dumb mistake - i did the calculations (while you were all wondering how dumb i was) there's no real change sooooooooory!!!

oops - what was it I said about men earlier?? !!!!!!!
 
I thought as much as I did calculate it myself before and saw no major change.
Aisling, we all have our bad days...it's due to being so perfect all week....LOL!!!.
 
Headachecity said:
Wow, are you serious???. I am just worried about that Tax credit my husband has been claiming for his other child, eventhough his ex is married to someone else he still supports his child & he has planned to ring to come off that tax credit, will they not question that when they see we are married now??.
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The One Parent Family Tax Credit your husband is claiming cannot be claimed by anybody living with someone as husband and wife wether married or not.

This means in your husbands case, he is not entitled to it and has not been since you started living together (or if was living with anybody else before you).

He should contact Revenue and come to an arrangement to pay it back as soon as possible, as the longer he leaves it the higher the interest and penalties may be.

Also, in general Revenue tend to be more lienient when the taxpayer comes forward and admits to a mistake, rather than waiting for Revenue to catch them.
 
Oh god, I knew it!. I have been at him for a long time to ring them up and come off it but he claimed he was entitled to claim it as he pays his ex €100 per week in maintenance plus other things he pays for. Some idiot told him about it and he listened to them instead of me.
I'm going to type up a letter to revenue about it on his behalf and get him to sign it to get this sorted!. We have had numerous arguments over it and I knew I was in the right..fit to be tied now!!
 
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But can you claim relief for maintenance payments??

Headachecity said:
Oh god, I knew it!. I have been at him for a long time to ring them up and come off it but he claimed he was entitled to claim it as he pays his ex €100 per week in maintenance plus other things he pays for. Some idiot told him about it and he listened to them instead of me.
I'm going to type up a letter to revenue about it on his behalf and get him to sign it to get this sorted!. We have had numerous arguments over it and I knew I was in the right..fit to be tied now!!
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Not for child maintenance anyway. Somebody else might be able to clarify the situation as regards to spousal maintenance?
 
mo3art said:
Not for child maintenance anyway. Somebody else might be able to clarify the situation as regards to spousal maintenance?
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Thing is they were never married, both very young when they had the baby and she is near teens now.

He met me 3 years after he split up with her. He has been giving her maintenance and other assistance all the time eventhough she is now married to someone else and has other kids with this guy.

I did know you can claim the tax relief if you are not living with the child but paying maintenance but if you marry you have to come off it.
 
From Revenue.ie/leaflets/iT9
You do not qualify for One-Parent Family Tax Credit if:​


You are a person qualifying for the Married Person's
Tax Credit
​
or
​

​

You are a person living together with another
person as man and wife​
​
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​
 
Well then he's not entitled to any tax relief at all. Regardless of whether his ex has since married and has other children, he is still obliged to maintain his child until the child reaches 18 (or 23 in the case of the child remaining in full time education).

Even if you were cohabiting (living together as man and wife) he was not entitled to claim the single parents tax credit. His best bet is to ring his local tax office himself, and then follow it up with a letter, explaining what his situation is.
 
34000 is the standard rate cut off point for a single person

Individual Assessment
Assuming you are both working both of you are taxed at anything under 34000 at a rate of 20%
Your partner is earning 28,000
You are earning 60,000
neither you nor your partner can use the extra 6000 allowance that your partner is not using i.e balance between her salary and the standard rate cut off point.


Joint Assessment
Standard rate cut off point= 68k
Assuming you are both working both of you are taxed at anything under 34000 at a rate of 20%
Your partner is earning 28,000
You are earning 60,000
You can take your partners unused allowance raising your threshold bringing more of your salary into the 20% bracket.

You earn more than you would have if you were individually assessed.
You only benefit where one partner is earning under the standard rate cut off point.
 
Hi All! I've spent about an hour trying to make sense of this thread but it's still a load of Chinese to me. I'm basically trying to determine whether my wife and I should go joint or separate and how to fill in the 'b' section in the [broken link removed]. Could someone make a quick calculation for us please? One of us earns 77,000 and the other 40,000. Cheers!
 
iamaspinner said:
Hi All! I've spent about an hour trying to make sense of this thread but it's still a load of Chinese to me. I'm basically trying to determine whether my wife and I should go joint or separate and how to fill in the 'b' section in the [broken link removed]. Could someone make a quick calculation for us please? One of us earns 77,000 and the other 40,000. Cheers!
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Basically on those levels you could just split credits and cut-off between you equally as you each have some higher rate exposure.

On Credits you can allocate however you want provided the PAYE credit of €1,830 must remain with each so you'd have €1,830 personal & €1,830 PAYE credit each. Or you could have one get €1,830+1830 personal + €1830 PAYE and leave the other with €1,830 PAYE only. It's up to you.

On Cut-off point, you can earn €72,800 between you at 20% in 2009. You can split this not more than €45,400 to either. So you could go 50/50 or go €45,400 to the €77,000 earner and €27,400 to the €40,000 earner. Either way you will between you get €72,800 at the low rate.

A suggestion, would be keep your credits each and split the cut-off €45,400 - €27,400 in favour of the higher earner. The higher earner also could be the assessable spouse.

Other posters might have alternative views.
 
whether they are assesed jointly or separately would it not work out the same net tax as both are above th 36400?
 
Thank you Graham. Suggestion well noted!

dockingtrade, my calculations work out the same too at €32,682. However, I haven't taken into account tax credits (which I think I finally begin to understand what the hell they are) or anything else. Is it likely these will make a significant difference?
 
Hi all

Have been married couple single earner for last 5 years. Wife earned €899 last year from part time job. I received a P21 balancing statement saying i owed tax. We receive the home carers tax credit so understand that SRCOP won't be increased. So my wifes income gets taxed at 41% or €368.59. However she is entitled to paye tax credit is she not of €1860 which cancels this tax amount. Howver on the P21 she has only been allocated €179.80 of her PAYE credit. Why is this ? Thanks for any help.
PS. Can't ring them today because they are on strike !
 
jerrylow said:
Hi all

Have been married couple single earner for last 5 years. Wife earned €899 last year from part time job. I received a P21 balancing statement saying i owed tax. We receive the home carers tax credit so understand that SRCOP won't be increased. So my wifes income gets taxed at 41% or €368.59. However she is entitled to paye tax credit is she not of €1860 which cancels this tax amount. Howver on the P21 she has only been allocated €179.80 of her PAYE credit. Why is this ? Thanks for any help.
PS. Can't ring them today because they are on strike !
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The PAYE credit is limited to the value of the earnings so on €899 earnings PAYE credit due is 20% of that or €179.80.
 
Hi,
Sorry to butt in on this thread but does anyone know if there are any calculators online that one could use to work out if I would eb better off being singly or jointly assessed with my husband? Currently I pay no higher tax but he does so I am guessing it might be more benefical for him to take my credits but I want to check first.
Thanks!!
 
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