Gross Tax Credit Reduction ????????

[mondo101]

Hi all, I recently (July 2019) informed revenue that my wife is now receiving Carers allowance as I understand that it is taxable.
She started to receive carers allowance from Feb 2019

On my tax certificate, my tax credits are now listed as follows:

Personal Tax Credit: €1,650
Employee Tax Credit: €1,650
Home Carers Tax Credit €1,500
Medical Insurance Relief € 400
Wifes Employee Tax Credit €1,644
Gross Tax Credits (A): €8,494

Tax Credits Reduced By:

DSP Carers Income: €1,644
Gross Tax Credit Reduction (B): €1,644

Net Tax Credits (A-B): €6,850

So why is my wife's tax credit of €1,644 added to mine and then immediately it is reduced again by the same amount €1,644 ?

I understand that they reduce my credits as a way to get the tax owed but I am not benefiting in any way from my wife's employee tax credit .

 

[Ciru75]

You're not supposed to benefit from your wife's employee credit, employee tax credits aren't transferable to a spouse. It's only on your tax credit cert to be set against the tax on your wife's carer's allowance.