Brendan Burgess
Founder
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I actually looked at reducing my hours, and my wife getting a part-time job. For any married couple with an income over 77,600 after pension contributions, they are better off by 8k per annum after taxes where each person earns at least 33,800 versus where there's a single earner.Generally it's the cost of childcare plus loss of Home Carers Credit which makes it not worth it
Yep. So if you got a part time job now, you'd get a good chunk of income for remainder of the year tax free.View attachment 2177
Hi guys
I have added in a new column for someone earning €8,000
Effectively the first €8,000 is tax-free.
Is that correct?
Brendan
Yep. So if you got a part time job now,
Gordon. Would you mind explaining that for me, please?Yes, €25k is usually the magic number.
To put some real examples on this after talking to some colleagues working part-time. For someone working a 3 day week.
Assuming no other income, and spouse is in higher tax bracket.
Someone on 40k pro-rata for a 3 day week falls under the threshold.
With a 20% pension contribution it pushes up to 51.6k.
Someone returning to work on 1st October on 60k pro-rata would only pay 200 income tax this year (extra for PRSI). If it's contract work, or using parental leave, you could work 8 months a year without going into higher bracket. Again, 20% pension pushes this up to 75k, and you're off work for the school holidays.
20% cut-off | 26300 | |
Spouse Salary | 50874 | |
3 day week | 30524.4 | |
Pension | 5% | 14% |
1526.22 | 4273.416 | |
Taxable income | 28998.18 | 26250.98 |
Tax 20% | 5260 | 5250.197 |
Tax 40% | 1079.27 | 0 |
Tax Total | 6339.27 | 5250.20 |
Take home | 22658.91 | 21000.79 |
Is the rental income in your sole name, or joint names?also with rental income
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