Tax credit split

D

Danpaddyandy

Registered User
Messages
2
Good evening all,

Quick question on best practise for using tax credits efficiently.

Married couple both working joint assessed.

One person earns 33k and 2nd person earns 24k.

How should the personal tax credit be split out?

Theres 3300 of credits available, should the higher earner take all these or should it be apportioned in proportion to salary

Thanks
DPA
 
You presumably have €3,300 personal credit and €3,300 PAYE tax credits between you.
Split equally,you both can earn €16,500 tax free,with both your balances taxed at 20%.
As the credits are both fully utilised by splitting them equally,there is no benefit to doing it any other way.(If one earner had less than 16.5k income,then moving credits would be worthwhile)
 
Also worth noting that if you have a full medical card (not GP only card) that you would both pay a lower rate of USC. You'd need to contact Revenue to check if this has been noted on your certificate of tax credits.

My spreadsheet calculator (Excel, uses macros) might be useful-> http://taxcalc.eu/monthlyss
 
You must log in or register to reply here.
Back
Top