Hi
I am trying to assess the situation if my wife gives up work and have entered the murky world of calculating our tax liability. We are both PAYE and jointly assessed, I claim the releif on the €43K. I have used taxcalc.eu and it's great, but i'd prefer to fully understand the calculations.
In the calculator the reliefs are claulated as €17600, at 20% thats the married persons tax credit of €3520. Then the PAYE credit is €8800 and at 20%, that's €1760. If my wife is not working, can I not claim this credit as well and so increase it to €3520?
Secondly, on perusing the revenue leaflet, it mentions exemtion limits and under personal cirumstances the exemption limit for married persons of €10420. How does this work, as any calculations I have seen do not not include an exemtion level?
Finally, I understand there is a home carers credit, but on the leaflet, in the personal circumastances section, there is 'additional for dependent children' is this a general increase in exemptions or does this not apply to PAYE if you claim the increase to €43000.
Finally, finally, if she gives up work mid year, should I wait until year end to adjust the credits etc, or will I do it immediately? She will have earned about €6k by the time she leaves.
Any clarity offered would be appreciated!
I am trying to assess the situation if my wife gives up work and have entered the murky world of calculating our tax liability. We are both PAYE and jointly assessed, I claim the releif on the €43K. I have used taxcalc.eu and it's great, but i'd prefer to fully understand the calculations.
In the calculator the reliefs are claulated as €17600, at 20% thats the married persons tax credit of €3520. Then the PAYE credit is €8800 and at 20%, that's €1760. If my wife is not working, can I not claim this credit as well and so increase it to €3520?
Secondly, on perusing the revenue leaflet, it mentions exemtion limits and under personal cirumstances the exemption limit for married persons of €10420. How does this work, as any calculations I have seen do not not include an exemtion level?
Finally, I understand there is a home carers credit, but on the leaflet, in the personal circumastances section, there is 'additional for dependent children' is this a general increase in exemptions or does this not apply to PAYE if you claim the increase to €43000.
Finally, finally, if she gives up work mid year, should I wait until year end to adjust the credits etc, or will I do it immediately? She will have earned about €6k by the time she leaves.
Any clarity offered would be appreciated!