Joint assessment question

P

Proxima123

Guest
Hi All,
quick question regarding the current rules regarding joint assessment as I dont seem to currently have grasped all the nuances :)

My wife and I got married in July '05 and have been seperately assessed since, but with the onset of the new year, once I inform the revenue of or marital status, we will move to jointly assessed.

Here is where my grasp of the rates is fuzzy..Say I earn 54K at present and my wife earns 40K, am I correct in assuming that under joint assessment for '06, 64K will be at 20% and the remaining 30K is at 42%.
We then deduct credits, add PRSI etc. which I think I'm ok on.

Now my wife will be going on maternity leave mid '06 and at such time will be in receipt of maternity benefit only. Am I right in that this benefit will not be taxable? Hence I will use all transferrable tax credits and all my salary is taxed at 20% for the duration?

Then the big question will be posed on the return to work of my wife. Lets assume this will be for next year. If my wife decides to stay at home to mind the two kids, I assume the scenario is as above. If however she decides to go back into the workplace on a part time basis, I believe that she can earn up to approx 5K and still be in receipt of the home carers credit? (also what use is this non transferrable credit if my wife doesnt work?).

Sorry for the long debut post, thanks in advance...
Proxima
 
Back
Top