Non working spouse/Qualified Adult

[Megan]

Could someone help on this. My uncle is receiving an old age contributory pension and also has self employment earnings. He is filling out his Form 11E form for 2009. His pension is €230.30 + €153.50 for his wife as a qualified adult. Does this payment to his wife entitle them to be treated as married couple with both spouses with income. His wife doesn't have any other income then the €153.50. Thanks.

 

[allthedoyles]

Your uncle receives Old Age Contributory which is regarded as a benefit and not income from employment ,

However check the exemption limits , to see if your uncle qualifies for tax exemption.

Exemption limit for 2009 was € 40,000 ( Married - Aged over 65 )

http://www.revenue.ie/en/tax/it/leaflets/it1.html#section2

 

[Black Sheep]

Have been having this discussion with revenue many times and have never got a definitive answer.
As Pension is paid separately to both parties I felt the QA should have a PAYE allowance. However revenue point out that both parts of the Pension are his and therefore and therefore no PAYE allowance can be allocated to the QA.

They will be treated as a married couple with one spouse only having income

 

[Megan]

Thank you for your reply.

 

[Megan]

Just another quick question on this. When filling out the Form 11E should he enter the gross amount of €19,957.60 pension as his income or should he enter €11,975.60 for himself and enter €7,982.00 under his spouse. His wife pays into a PRSA for which she never gets tax credits and just wonder should she qualify now against the €7,982.00. Thanks