Tax query - transferring unused credits to spouse

[house_hunter]

Hi,

My wife has to started to work from this month and I want to know whether I would be able to transfer her unused tax allowance on the 20% tax band to me. She is on 32K and I am on 53K. Since, she is starting work only this month she will not reach the 20% tax cut-off point of 32k in this tax year. So, will I be able to transfer any unused tax allowance on the 20% tax band Say 32k(Wife's pay for the full year) - 10.6K (wife's pay for remaining months in this tax year) = 21.4K on to my 20% tax band for this year. Sorry if I am not clear with my query!

Many thanks

 

[DrMoriarty]

Hi house_hunter, I've edited your title slightly for clarity.

From :

If both of you have taxable income, you can decide which of you is to be the assessable spouse. You then ask the tax office to allocate the tax credits and standard rate cut-off point between you in whatever way you wish. (The PAYE tax credit, employment expenses and the increase in standard rate cut-off point of 23,000 euro are not transferable).

If your tax office does not receive a request from you to allocate your tax credits in any particular way; the tax office will normally give all the tax credits (other than the other partner's PAYE and expense tax credits) to the spouse being assessed. The spouse being assessed must complete the return of income for the couple and is chargeable to tax on the joint income of the couple.

 

[Tenacious]

The easiest way to allocate credits between a married couple is to do so online. You can register on www.ros.ie . However the PAYE credit, employee flat rate expenses and the increased standard rate band are not transferable. A married couples standard rate band is €41,000 plus income of second spouse, to a maximum of €23,000.