Single vs. Dual income tax

M

micheller

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Hi All,

I'm looking for an idea of how much of an impact being a one income family would have. If I go back to work 3 days/wk most of my wages will go to creche for our twins. I'd have something like 100 euro excess which will get spent on petrol.

However, my other half has all my allowable credits and allowances- which is something like up to mid 60k's at 20% and my tax allowances- correct? So, isn't it true to say that I'm not just working for the excess after creche- we're gaining from being a dual income family in taxation? Wouldn't becoming a single income family have a fairly big financial impact then- to lose all the extra tax allowances?

Is the actual best way around this to have a job for minimal hours a week so I get my tax allocations? Thanks in advance...
 
Yes, if you work you will get additional basic rate band (no additional tax credits), taxable at 20% rather than higher rate tax.

However, you may loose the Home Carer tax credits that your husband has depending on your income level.
 
Thanks for the response :)
We didn't qualify for home carer and it's quite small anyway. But it's good to understand the other tax implications- even if I work the minimal number of hours do I get the same allocations to share with my OH?
 
A stay at home (Married assessed jointly) mother is entitled to home carer tax credit max of €770 per annum (or should I say their spouse is).

That's not small in my view!
 
Domo said:
A stay at home (Married assessed jointly) mother is entitled to home carer tax credit max of €770 per annum (or should I say their spouse is).That's not small in my view!
Click to expand...


I'm not a sahm mum, I'm on maternity leave and do intend going back to some work. I suppose in the context of my normal wage it's comparitively small, that's all :)

Thanks again,m.
 
IT66 is the Revenue document.

What it does not make clear is that you get the 'Home Carer Tax Credit' OR the 'Increase in the standard rate band'.

So, if you are on any sort of half decent wage it is worthless.
 
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