Karl Grabe Tax Calculator Query

Hi All, Was looking at Karl Grabe Tax Calculator and I have a query .

In this example I put in a Salary for my self of 50,000 Euro for 2010, and 0 Euro for my Wife . I get the following monthly details
Net Pay : 3316 ,
Income Levy : 83
Prsi and Health Levy : 311
Net Tax Due : 456

In the next example i put in a Salary of 50,000 again for myself but this time i put in a yearly salary of 10 Euro for my wife and i get the following Monthly Details

Net Pay ;3469
Income Levy : 83
Prsi and Health : 311
Net Tax Due : 304

Could you tell me why there is a difference of 152 Euro in these calculations, there should be no difference in the Net Tax Due or am i missing out on something here.

Regards, Jumper 1

It would appear that the calculator is giving your spouse the full PAYE credit of €1,830 and because she doesn't need all of this to shelter her own income it is transferring the balance to you, which is incorrect.

In practice, this credit would actually be restricted to the amount required to shelter your spouse's PAYE income.

@jumper1:
In your example when you enter 0 (or blank) for your spouse's salary the calculator assumes that your spouse is not working and only assigns the married personal credit along with your single employee credit.
You can see this in the details tab and then open the Credits folder.

Now when you enter 2 euro or more for spouse income the calculator assumes your spouse is working and applies his/her personal credit along with the two credits mentioned above.
So that explains why it calculates less tax.

But as DB74 pointed out this is incorrect for low annual salaries under the personal tax credit amount (1830) and so the calulator doesn't handle it correctly - I hadn't even occurred to me.
I presume the calculator is correct again above this (1830).

I'll take a look to see if this can easily be fixed.

this is incorrect for low annual salaries under the personal tax credit amount (1830)

Click to expand...

Just to clarify this- it's incorrect if the low annual salary is below the value of the personal credit divided by the standard tax rate ie €1830/20% = €9150, rather than below €1830