Help with Tax credits Cert, after reduction in same.

Hopefully someone can put me straight on this before I get onto revenue.

Mrs.Sparkrite is not employed but is in receipt of a pension .

I am employed and am claiming Mrs. Sparkrite's tax credits of 3.300.

I received my Tax Credit Cert. today and I see that they have reduced the total tax credits

by 20% of Mrs. Sparkrites pension and ALSO reduced the Band 1 allowance for married

couple, with one income, of €41,800 by the amount of the pension.

Surely it should be one or the other? ie: reduce the credits or reduce the Band 1 allowance,

but not BOTH?

Any advice please?

Depends on how much her pension is. You are entitled to the increase above €32,400 up to €41,800 to the extent that your wife does not use it.

Credits is correct. It will all wash out at the end of the year.

Thanks for the reply Joe, but where does the €32,400 come from?

Sorry single persons standard rate cut off is €32,800. A married person can get the increase up to €41,800. But overall the max is €65,600.