Tax allowances when having children.

[rescue16]

Hi there people sorry if I am in the wrong place with this. Myself and the wife are planning to start a family but we are wondering what it means money wise are we going to be paying less tax. We are both full time in our jobs doing 39 hours per week and also just wondering what intitlements we are intitled too. I know we get childrens allowence so any more info would be great. Thanks in advance people .

 

[micheller]

Child Benefit is the main one, which if you are both working and paying tax is, in effect, a refund of your taxes really. Maternity benefit for 26 weeks.
Make sure the tax office has you down as jointly assessed and you will be able to transfer her unused tax credits for the time she is off. After that, just tax and PRSI/ Levy refunds at year end if you've overpaid.

Apart from that, there's not much else unless you are low income. In which case check out citizensinformation.ie to read up on FIS (Family Income support) and Medical cards. Best of luck.

 

[dustybin]

i never knew i could claim the wifes credits while she was on maternity leave but she is due back next month. i assume there is nothing i can do about it now though is there?

 

[gianni]

i never knew i could claim the wifes credits while she was on maternity leave but she is due back next month. i assume there is nothing i can do about it now though is there?

Don't worry you can claim your wife's tax credits at this stage. Speak to your local PAYE office (assuming you are a PAYE worker). Tell them of your situation and they will explain the best options for you. They are usually very helpful.

 

[Mrmr]

If she's back next month, then she will have been on Maternity leave in 2010. In this case, you can apply for a P21 balancing statement and will receive a refund of any overpaid tax. You may not want to claim her credits for 2011 if she will use them herself.