Prelimnary Income Tax estimation for next year (only one spouse w income)

HeatherG

Registered User
Messages
22
Hi all

This is probably a really stupid question, and I'm sorry for it, but I've been looking around the internet trying to find the answer and am unsure of my likely income tax liability for next year. I want to know this because I want to work out how much PRELIMINARY TAX I should pay NOW for y/ended Dec 2019.

I am 73 and I have a net taxable income of about €37,500. I married last year (november 2018), and my spouse has no income. I know we both have to do separate tax returns for y/ended Dec 2018 (and I may get a wee refund early in 2019). But I'm wondering about my likely income tax liability for this year ended Dec 2019 (because I'm soon going to do my tax return and wonder how much Prelim Tax I should pay towards my tax liability for y/ended Dec 2019. These questions below concern how much Preliminary Tax I should estimate and pay for next year's tax return (ie for the year ended Dec 2019).

My first and main question is: Will I be able to enjoy a tax credit of €3,300 (not €1,650), when I file our tax return next year (joint assessment) in Oct 2020, for y/ended Dec 2019 - even though my spouse has no income?

Second: Will my age allowance double from €245 to €490, even though my spouse is under 65 (I am 73)?

Third: Can I assume that my standard rate cut-off next year (ie for y/ended Dec 2019) will be €44,300 (and not 26,300)?

Fourth: Are there any other differences in income tax calculation for y/ended Dec 2019 and subsequent years, now that my status is married and we're jointly assessed?

Fifth and finally: Assuming the answers to the above are "YES", when deciding how much Preliminary Tax I should pay NOW (or whenever I submit my return for y/ended Dec 2018), can I estimate and pay my Preliminary Tax for 2019, based on these higher figures?

If so, that would be wonderful!

Again, I'm really sorry to be so stupid, but my brain turns into mush when I try to get to grips with the Income Tax system. Thank you very much in advance

HeatherG
 

Ciru75

Frequent Poster
Messages
76
Hi all

This is probably a really stupid question, and I'm sorry for it, but I've been looking around the internet trying to find the answer and am unsure of my likely income tax liability for next year. I want to know this because I want to work out how much PRELIMINARY TAX I should pay NOW for y/ended Dec 2019.

I am 73 and I have a net taxable income of about €37,500. I married last year (november 2018), and my spouse has no income. I know we both have to do separate tax returns for y/ended Dec 2018 (and I may get a wee refund early in 2019). But I'm wondering about my likely income tax liability for this year ended Dec 2019 (because I'm soon going to do my tax return and wonder how much Prelim Tax I should pay towards my tax liability for y/ended Dec 2019. These questions below concern how much Preliminary Tax I should estimate and pay for next year's tax return (ie for the year ended Dec 2019).

My first and main question is: Will I be able to enjoy a tax credit of €3,300 (not €1,650), when I file our tax return next year (joint assessment) in Oct 2020, for y/ended Dec 2019 - even though my spouse has no income?
Yes.

Second: Will my age allowance double from €245 to €490, even though my spouse is under 65 (I am 73)?
Yes.

Third: Can I assume that my standard rate cut-off next year (ie for y/ended Dec 2019) will be €44,300 (and not 26,300)?
Yes.

Fourth: Are there any other differences in income tax calculation for y/ended Dec 2019 and subsequent years, now that my status is married and we're jointly assessed?
You'll be exempt from income tax if your (joint) income is less than €36,000. If it's a little higher, you'll get marginal relief. For income of €37,500, the maximum income tax due (USC will still be due as well) is €600 for the year (€1,500@40%). The €1,500 is the amount your income is over €36,000.

Fifth and finally: Assuming the answers to the above are "YES", when deciding how much Preliminary Tax I should pay NOW (or whenever I submit my return for y/ended Dec 2018), can I estimate and pay my Preliminary Tax for 2019, based on these higher figures?

If so, that would be wonderful!
Yes. :) If you're confident that you know what your income will be for 2019, you can pay 90% of your 2019 bill as preliminary tax.
 

HeatherG

Registered User
Messages
22
Dear Ciru75
, alth
Thank you SO much for your replies! They're extraordinarily helpful, and I appreciate this help from a total stranger; it's fantastic.

First, it's really useful to have confirmation of what 'd kind of thought from reading online (but still wasn't 10% certain about because I wasn't sure what things applied to a married couple with only one person earning. Second, to be honest, although I had HEARD ot the term 'marginal rate', I never really knew wheat it was or meant. That's incredibly helpful. I've just now googled it and learned a bit mre about it.

So, thanks to you, I now feel confident in what I'm doing. AND I'm going to save myself a good deal more much-needed money! Thank you very much indeed. And kindest regards

HeatherG
 

torblednam

Frequent Poster
Messages
430
Heather,

The advice above looks pretty spot on, but first thing’s first: Why do you feel you need to pay preliminary tax i.e. do you have a self employed source of income, from rents or investments, that brings you over the threshold for filing a Form 11??
 
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