income tax query

L

Legrande

Guest
I have a fairly basic q. on income tax ( well I hope so) - I'm earning 53000 gross, and I pay 233 monthly to a company pension. My wife was working earlier this year on a temp contract earning 40K per annum but worked 4 months only. Since then shes been in receipt of maternity benefit and we've just had our first child. She will not return to work until next year and will have no other income. I contacted the tax office to see if my tax credits would increase due to our circumstances, but they say no, as my wife had already transferred the max to me. Is this correct? Money, naturally is tighter and I just want to be sure we are getting the max tax benefit. I'm getting about 3100 in take home pay- is this correct? I tried the calculator, but find it hard to work in our circums. I'd appreciate any advice.
 
> I contacted the tax office to see if my tax credits would increase due to our circumstances, but they say no, as my wife had already transferred the max to me.

If you were already on joint/aggregated married taxation then the standard rate cut off point (SRCOP) and tax credits would have been allocated as appropriate - e.g. on the basis of the split requested or, more likely, with €19K SRCOP allocated to your wife as the lower paid and the remaining €37K SRCOP allocated to you with the relevant tax credits (some of which are not transferrable) allocated to each individual. If it turns out that, for one reason or another, you would have paid less tax through a different allocation of SRCOPs/credits or due to other events (e.g. your wife leaving work) then this will either be taken care of through adjustment of your SRCOP/tax credits and payroll calculations or else through a reclaim for any tax overpaid after the end of the tax year.

These Revenue resources might be of use to you:

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This calculator might help to get an idea of what your tax and PRSI/health levy liabilities are in different situations.

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> I tried the calculator, but find it hard to work in our circums.

Sorry - just read this now. Not sure why you find it difficult to use the calculator. Perhaps because of the changing circumstances of your wife's employment? If so then just extrapolate each individual's expected gross earnings for the year and work with those figures rather than trying to work things out on an incremental basis.
 
Sorry - wrong link above. This is the correct link to Karl Grabe's tax calculator:

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