Paye as a married couple with 1 income and 2 incomes

[jerrylow]

I have been paying tax all year as a married couple with 1 income. My wife has now got a part time job. Can we now claim credits and allowances as amarried couple with 2 incomes ? Can we clain the same credits and allowances for the full year ? Do we refund the home carers allowance evn though my wife will only work part time ?

 

[ClubMan]

I have been paying tax all year as a married couple with 1 income. My wife has now got a part time job. Can we now claim credits and allowances as amarried couple with 2 incomes ?

What way are you taxed at the moment - joint/aggregated married assessment, single assessment or assessment as two separate individuals? If it's joint/aggregated then just request an updated statement of tax credits to take account of the change in circumstances. If it's one of the other two then you may need to wait until year end to file a request for a P21 balancing statement.

Can we clain the same credits and allowances for the full year ?

Not sure what you mean?

Do we refund the home carers allowance evn though my wife will only work part time ?

Not necessarily - the home carer can earn up to some limit (c. €6K p.a.?) before the credit is lost. It may be reduced depending on the level of earnings. See www.revenue.ie for more info.

 

[jerrylow]

Thanks Clubman, i will try and expain better.

I am taxed at the moment as joint/aggregated assessment but obviously we cannot claim my wifes paye credit and our 20% tax band limit is 35,400. With my wife now working can we claim the full paye allowance ie. €1830. Our band limit was €44,400 at 20% does this now become a max of €70,800 (44,400 + 26,400 max). If so can we claim these for the full year even though my wife has only started work now.

 

[asdfg]

With my wife now working can we claim the full paye allowance ie. €1830

Your wifes earnings will have to be 1830 *5 = 9,150 in order for her to claim the full PAYE credit. If her earnings for the rest of the year are less then she will not pay any tax.

Your SRCOP will be 44,400 plus your wifes salary up to a max of 26,400

If your wifes salary for the full year is 12,000 your (both of you) srcop will be 56,400

If your wifes salary for the currect year is 4,000 your (both of you) srcop will be 48,400

Anything that your wife earns over 9,150 will be taxed at your marginal rate. You can allocate the credits and SRCOP. Has to be done before mar/ april. Any overpayment / underpayment will be paid /due at the end of the tax year (Request balancing statement)

Think thats how it works. Its been a while since I looked at it.

This might explain it Figures are based on 2006 but the principal is the same