Hi. We are both working and tax assessed jointly. In a retirement scenario, one of us would earn over €33,800 pension and the other a good bit less. Am I correct in thinking the pension paid to one person over €33,800 will be taxable at 40% even though the other person falls short of €33,800 by some distance? Figs for working out:
Pension A = €36,000 Pension B = €24,000
Tax: (€33,800+€24,000) @ 20% = 11,560
plus (36,000-33,800) @40% = 880
Total Tax = 12,440 less credits etc.
Is this correct?
Pension A = €36,000 Pension B = €24,000
Tax: (€33,800+€24,000) @ 20% = 11,560
plus (36,000-33,800) @40% = 880
Total Tax = 12,440 less credits etc.
Is this correct?