Joint vs separate assessment

[Ardent]

Hi all,

My wife and I currently share tax credits, an arrangement we made from when she took a career break.

She's back to work now and earning €25K p/a. I earn about €150K. We also have an idle property which we have yet to decide to sell or rent out.

A couple of questions -

1. Is there any reason we shouldn't go back to separate tax treatments? As things stand I feel like - with every Form 11 we return - that we're paying 52% tax on her earnings. Also, renting out the apartment and being taxed at 52% doesn't make any sense for us.

2. Why does Revenue makes it impossible - if not extremely unclear how - to request separate tax treatment?

Thanks!

 

[Páid]

1. You might be worse off - is your wife earning enough to use up her tax credits / tax bands?
2. You just need to open a case with MyEnquiries or ring them.

 

[T McGibney]

As things stand I feel like - with every Form 11 we return - that we're paying 52% tax on her earnings.

It may well feel like that, but if you look closely, you're actually paying 20% plus 4% PRSI plus USC on whatever she earns.

Also, renting out the apartment and being taxed at 52% doesn't make any sense for us.

If you share that income jointly, most or all of your wife's share of that income will be taxed at 20% plus 4% PRSI plus USC.

2. You just need to open a case with MyEnquiries or ring them.

+1