Stay at home mom

K

kibs

Guest
Hi Guys,

I know this has probably been done to death at this stage but i am still confused about tax credits etc.

I am thinking of giving up work to become a stay at home mom with no income.

Basically my details are:

Hubby earns €50k a year. I have worked out the tax but need to know if i am doing it right.

here goes

Pay 50,000
41k at 20% 8,200
9k at 42% 4,320
Total 12,520
Less tax credit - 3,260 (married persons allowance)
Less Carers Allowance - 770
Total tax payable 8,490

Monthly tax payable 707.50

Monthly Wage 4166.66
Less tax - 707.50
Total Wage 3459.16
Before PRSI

Am i doing it right???
 
Are you sure that you are on joint/aggregated married taxation? If not and you are currently on 20% or planning to give up work then you should switch to it as it should be more beneficial to you. If there is outstanding tax then you should reclaim it for up to the last 4 years.

Try putting the figures into [broken link removed] - first as a married couple with two incomes and then as a married couple with one income - just to sanity check them. It may not be 100% accurate or take all issues into consideration but it should be a good start. You may also need to manually factor in some additional tax credits/allowances (e.g. Home Carer's Tax Credit if applicable) - see here.
 
Thanks for the info.

We r currently being assessed as a married couple coz i earn less than the cut off point of €32k so transfer the rest to my hubby as it stands.

will check out the calculator now.

Thanks again
 
OK - so you are already on joint/aggregated married taxation and benefiting from that presumably. Good. How much do you earn right now?
 
I earn €28K at the moment so transfer €4 to my husband already.
 
Your husband will be entitled to the employee's tax credit of €1,490 if he has Schedule E employment and is not a propriety director (i.e. not owning more than 15% of the share capital of a company). Schedule E is the tax term used to describe income derived from employments, directorships and pensions arising in Ireland.
 
Is this in addition to the married persons tax credit of €3260??
 
Oh i think is this the PRSI credit?? Sorry really messed up with whole tax credit bands etc.

Doing my head in trying to work out what we will get if i give up - dont want to do anything drastic and then find out we r in a worse position than i had calculated

Thanks
 
Dont quote me - coz i know nothing really, but i was told if i stay at home i could claim the carers allowance coz basically i would be caring for our daughter.
 
kibs said:
Dont quote me - coz i know nothing really, but i was told if i stay at home i could claim the carers allowance coz basically i would be caring for our daughter.
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Are you sure that you don't mean the Home Carer's Tax Credit that I mentioned earlier? Carer's Allowance is a means tested SW payment. Carer's Benefit is the PRSI linked none means tested equivalent. Carer's Allowance/Benefit is not relevant to the care of children unless they are need full time care due to illness/disablement etc.
 
Judging by Karl Grabe's tax calculator the following is a rough idea of the difference:

Both spouses working (€50K + €28K): take home = €61.5K

One spouse working (€50K): take home = €40.1K

These figures assume both spouses are PAYE on Class A PRSI getting the normal tax credits/allowances and do not take account of additional credits such as Home Carer's Tax Credit etc.
 
Thanks Clubman thats brillant - all i needed was someone to put it into plain english for me.
 
Bear in mind that those figures are just rough and the actual difference will depend on the specifics of your situation.
 
You should note that the home carers credit is not available where the increased rate band has been taken up by your husband. It's one or the other.
 
Ham Slicer said:
You should note that the home carers credit is not available where the increased rate band has been taken up by your husband. It's one or the other.
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Does the above not relate to staying at home to look after an elderly or infirm relative? The OP seems to think it refers to looking after one's children.
 
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