Newly Wed - Tax Credits/Tax Bands

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mick23

Registered User
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Hi all

this is my first post, im sure its being asked multiple times before but myself and my wife got married in early January 2012.We are both PS workers , earned 73k last year and my wife 61k
is there a financial advantage to us if we inform revenue of our changed status? i have lookd through previous threads and from my reading of them there is not an advantage from tax credits due to the amount my wife earns but that there may be an advantage in that my standard cut off point will rise from the 32800 it is now ? is this a correct interpretation ?

thanks!
 
There won't be any advantage in your case. As a married couple who are jointly assessed, you're higher rate tax band is 2x32800 = 65600.

As a married couple, 9000 of this can be assigned in whatever way you want i.e. you could have your band increased to 32800 + 9000 = 41800 but then your wife's band would only be 23800.
 
ok thanks for reply. the reason i earn more is because i do more overtime than my wife...so im just wondering would it be better for us to transfer some or all of the 9k to myself ? (sorry it prob seems like a stupis q...)
 
No, it's only worthwhile if your wife earns less than €32800.

If you take the extra €9k tax band then that means you will pay 20% tax instead of 41% on €41800 of your income, instead of 20% on only €32800.

However, your wife will then start paying 41% tax on all of her income above €23800. So the overall effect is the same.

In your case yous may as well just split your tax credits and bands equally.

It's worth reading this if you want to understand how it works
http://www.revenue.ie/en/personal/circumstances/marriage.html
 
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