Cohabiting couple - more cash by marrying?

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pebbledash

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I know that married couples can share tax credits where a cohabiting couple can't.

If one person is on jobseeker's benefit and one is on a salary of 45k, could anyone tell me what saving could be made by marrying? Or point me towards info where I could work it out?

Is the saving only to be made on income tax only, or can husband/wife also claim relief if they are paying for their spouse's education, dentistry etc..

Any info appreciated.
 
pebbledash said:
I know that married couples can share tax credits where a cohabiting couple can't.

If one person is on jobseeker's benefit and one is on a salary of 45k, could anyone tell me what saving could be made by marrying? Or point me towards info where I could work it out?

Is the saving only to be made on income tax only, or can husband/wife also claim relief if they are paying for their spouse's education, dentistry etc..

Any info appreciated.
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In the example you have outlined, based on 2009 figures the benefits would be as follows:

The "earning" spouse should benefit from an increase in the Standard Rate Cut-off Point of €8,600 (i.e. from €36,400 to €45,000). In monetary terms, the benefit would be €1,806 (i.e. 21% of €8,600).

The "earning" spouse should also benefit from the Married Persons Tax Credit of €3,660 rather than the Single Persons Tax Credit of €1,830. Obviously, the monetary benefit here is €1,830 (i.e. €3,660 less €1,830).

Relief for qualifying dental, medical or education expenditure is available to the person incurring the expense irrespective of whom the treatment or tuition is for (assuming the taxpayer has paid enough tax to benefit from the relief). So if I (actually) pay for your root canal I can claim tax relief.
 
pebbledash said:
I know that married couples can share tax credits where a cohabiting couple can't.

could anyone tell me what saving could be made by marrying?
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In my day, we married for LOVE. Wonder if we would still be married if our decision was based on finance!!!!
 
Who says they are not marrying for love

No harm in being practical about it either
 
Thanks for the replies. John Rambo your details were really useful - thank you.
MaryBM you make me laugh. How many couples who married for love divorce at the first sign of adversity?

When I do get married it will be a huge celebration because we've already put in years together of for better & worse, richer and poorer, sickness and health. Far stronger testimony to love than a couple who marry in the throws of romance and good times.

I feel very sorry for couples out there who might split due to the burden of the recession. The taxation system is so unjust as it stands.
 
Pebbledash, When we got married, we had NO money. It was 1984 when interest rates where through the roof. We bought an old (unheated) house with metal windows that were so well vented we had to put cardboard up at night to help keep us warm. I learned to cook 6 different meals with mince meat. On the 7th day we went to my parents for heat and dinner. Hard times but Good times.

I agree with you when you say you feel sorry for couples who may split due to the recession. Most young couples have never had the experience of having NO money and therefore cannot cope without it. We are now beginning to feel a little pinch but know what measures to take to ensure we are still managing. Been there, done that etc.

Best of luck to you both on your decision making. Hope we are still around and AAM is still here in 25 years for you to tell me of you Silver Anniversary celebrations. We had ours this year!!
 
MaryBM said:
Pebbledash, When we got married, we had NO money. It was 1984 when interest rates where through the roof. We bought an old (unheated) house with metal windows that were so well vented we had to put cardboard up at night to help keep us warm. I learned to cook 6 different meals with mince meat. On the 7th day we went to my parents for heat and dinner. Hard times but Good times.

I agree with you when you say you feel sorry for couples who may split due to the recession. Most young couples have never had the experience of having NO money and therefore cannot cope without it. We are now beginning to feel a little pinch but know what measures to take to ensure we are still managing. Been there, done that etc.

Best of luck to you both on your decision making. Hope we are still around and AAM is still here in 25 years for you to tell me of you Silver Anniversary celebrations. We had ours this year!!
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Scary. This is us only one year later 1985 ! It almost reads like our story. Know exactly what you mean and it is true that those who started in recent year with almost everything are finding it very hard to adjust. Whereas the generation before had some idea of what it was like to do with little.
 
The "earning" spouse should benefit from an increase in the Standard Rate Cut-off Point of €8,600 (i.e. from €36,400 to €45,000)... In monetary terms, the benefit would be €1,806 (i.e. 21% of €8,600).
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A tiny correction needed here- the SRCOP for a married couple is €45400 rather than €45000, so the benefit would be 21% of €9000 ie €1890
 
Additional info:

If you both were working she could earn up to 27,400 and your first 45400 would still qualify for 20%.

Savings:
45400 less 36400 @ 21%=1890
27400 tax only @ (20% plus levies)
 
deadlyduck said:
A tiny correction needed here- the SRCOP for a married couple is €45400 rather than €45000, so the benefit would be 21% of €9000 ie €1890
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Read the OP's post...the "earning" spouse's salary is €45,000 so my figures are correct.
 
Oops- my mistake, apologies!

Yes- the SRCOP would be the lower value of 45000 if the income is under the 'normal' threshold.
 
If the marraige works out, you will jointly gain albiet somewhat moderatelty. If the marraige fails, at least one person is in dire straights.
 
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