Tax credit allocation for married couple - Advice please.

D

Dustyman

Registered User
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51
Hi all,

Just wondering what is the best tax credit allocation for my wife and I?

My wife; Gross salary c.E64,500
Me: Gross salary c E28,500

Currently, in our last payslip;
My wife, paid monthly,
received basic gross salary of E5,363 and paid PAYE of E1,825.

Me, paid weekly (my salary fluctuates from week to week),
received basic salary of E536 and paid PAYE of E57.

Uncertain of the whole tax credit allocation situation.

Please, if any one can advise?

Thanks in advance.

G
 
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How long have you been married and are you currently jointly assessed?

As a married couple for 2018 you are allowed a lower tax band (20%) limit of €69,100 as both of you are working. Therefore you should transfer the unused portion of the band to your wife by filling our the following https://www.revenue.ie/en/life-even...documents/assessable-spouse-election-form.pdf

This can be backdated to your wedding date upto 4 years I think.

If you use the PWC income tax calculator it shows you what your combined net income should be. https://download.pwc.com/ie/budget-2019/income-tax-calculator.html
 
Thank you for your reply David1234 and information contained therein.

We were married in April 2016.

As far as I know we are currently jointly assessed but I believe the tax credits are incorrectly allocated
i.e my wife is being heavily taxed and I am only lightly taxed (she is the primary earner on c. E64,500 and I earn approx. E28,500).

When completing the 'Assessable Spouse Election Form' who should I put as the assessable spouse?
Should I put 2016 (year we got married) as the year to be assessed from?
Should we have the transferable tax credits and standard rate band allocated to the assessable spouse

Also, just to add. My wife is leaving her employment at the end of this December. She is availing of a severance package. She will be out of work for the beginning of 2019 until she finds new employment.

Thanks in advance,

Regard's,

G
 
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Usually the higher earner is the assessable spouse.

Call the revenue tomorrow and ask if you are jointly assessed. If not, back date the form to the date you were married. If your earnings were similar to 2018 you will be due a refund for 2016/17&18.

The tax bands can be reallocated within the defined limits at any time so if your wife is out of work for some of 2019 you should account for this.
 
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