Advice needed on being jointly assessed for income tax.

[Moscow_Flyer]

Hi. I earn 67k approx and my wife 5k. In the good old days jointly assessed we could add monies and allowances and pay a % at low rate and a % at high rate. My wife only uses a small amount of her low rate and revenue tell me I cannot use it.. even though we are jointly assessed

Is this correct?.

Thanks

 

[Joe_90]

The max standard rate band that you can get is €41,800 plus your wife's income up to €64,800 - that's individualisation.

 

[rpmk]

Yes what Joe is saying would be correct, if a married couple have two incomes, one spouse can earn up to 41,800 before 41% tax and the other spouse 23,800. Unfortunately that is the max that is transferrable between spouses. As your spouse only earns 5k she should only avail of her PAYE tax credit which is not transferrable and will cover her income and she will have no tax to pay. You should take the full marrried persons credit and your indivdual paye credit so 4950 total annual credits and 41,800 cut off with your spouse having 1650 tax crefit and 23,800 cut off. That is my thoughts on it..