{"id":11118,"date":"2022-04-19T18:28:19","date_gmt":"2022-04-19T18:28:19","guid":{"rendered":"http:\/\/legalblog.ie\/?p=11118"},"modified":"2023-08-27T17:58:32","modified_gmt":"2023-08-27T17:58:32","slug":"married-couples","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/married-couples\/","title":{"rendered":"Married Couples"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/married-couples\/#Assessment_Possibilities\" title=\"Assessment Possibilities\">Assessment Possibilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/married-couples\/#Single_Assessment\" title=\"Single Assessment\">Single Assessment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/married-couples\/#Joint_Assessment\" title=\"Joint Assessment\">Joint Assessment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/married-couples\/#Jointly_Assessed_Party\" title=\"Jointly Assessed Party\">Jointly Assessed Party<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/married-couples\/#Separate_Assessment\" title=\"Separate Assessment\">Separate Assessment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/married-couples\/#Year_of_Marriage\" title=\"Year of Marriage\">Year of Marriage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/married-couples\/#Credits_Bands_Single_Assessment\" title=\"Credits &amp; Bands (Single Assessment)\">Credits &amp; Bands (Single Assessment)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/married-couples\/#Credits_Bands_Joint_Separate\" title=\"Credits &amp; Bands (Joint \/ Separate)\">Credits &amp; Bands (Joint \/ Separate)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/married-couples\/#Non-_Resident_Spouse\" title=\"Non- Resident Spouse\">Non- Resident Spouse<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/married-couples\/#Home_Carer\" title=\"Home Carer\">Home Carer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/married-couples\/#Bands_and_Credits\" title=\"Bands and Credits\">Bands and Credits<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Assessment_Possibilities\"><\/span>Assessment Possibilities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The three options for assessment of married couples and civil partners are<\/p>\n<ul>\n<li>single treatment; assessment under which each is assessed as a single person;<\/li>\n<li>joint assessment; where they are assessed jointly generally in the name of one on behalf of both, and<\/li>\n<li>separate assessment where spouses are assessed separately, but unused tax credits and standard rate allowance are transferable and may be claimed by the other.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Single_Assessment\"><\/span>Single Assessment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under single assessment, spouses are assessed as if they were not married. Either spouse must give notice to the Inspector of taxes to choose single assessment before the end of the tax year. Single assessment is usually less beneficial because the lower rate band and credits are not transferred between the spouses, if they are unused.<\/p>\n<p>Under single assessment each is \u00a0treated as a single person.\u00a0 Both must file a tax return and receives single persons tax credit and single persons standard rate band. The other spouse\u2019s\/civil partner\u2019s allowances or bands are not available. The home carer credit is not available. Losses, credits, unused allowances and unused bands and\u00a0 deductions cannot be transferred.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Joint_Assessment\"><\/span>Joint Assessment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Joint assessment is the default presumption.\u00a0 A husband and wife may elect\u00a0 jointly for joint assessment, where they are not jointly assessed. It applies for the current year and subsequent years.<\/p>\n<p>A married couple (including same-sex couples) or civil partners, who live together, have an option to be taxed jointly, which is potentially more \u00a0favourable, than single or separate assessment. \u00a0A joint assessment is presumed by Revenue, until another option is chosen.<\/p>\n<p>Where joint assessment applies, \u00a0the spouse who is assessed is liable for the whole income tax. They receives a joint combined tax credit and \u00a0file a single return in respect of the joint income.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Jointly_Assessed_Party\"><\/span>Jointly Assessed Party<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where a couple is assessed jointly, either party may be assessed. Formerly, the assessment was made on the husband exclusively.<\/p>\n<p>The normal presumption is that the spouse with the greater total income is assessable. Where the wife\u2019s income is greater the wife may be assessed by the inspector of taxes. The spouses can choose otherwise.<\/p>\n<p>The election as to which spouse is to be assessed must be made by April 1<sup>st<\/sup> in the relevant year.\u00a0 This spouse who is assessable, has responsibility for tax liability on the full income and is assessable.\u00a0 He or she is entitled to the combined credits and should file a joint tax return.Where there is a repayment it is paid in proportion unless the inspector determines another method to be fairer.<\/p>\n<p>Where the jointly assessed spouse has not paid the tax within 28 days of the due date. Revenue can recover the tax from the other spouse. The amount may be the\u00a0 lesser of the tax payable on the amount that would been assessed under separate assessment.<\/p>\n<p>Where a couple, whether married persons or civil \u00a0partners are assessed jointly, either party may submit an online tax return on behalf of the couple for previous years of assessment. Where one of the parties is a chargeable person and required to make a return then the provision does not apply and his or her obligation remains.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Separate_Assessment\"><\/span>Separate Assessment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Separate assessment is similar in its financial effect ,but the spouses are assessed separately. Notice must be given to obtain separate treatment, as the legislation deems married persons to have elected for joint assessment, unless notice is given before the end of the tax year in writing to the inspector.<\/p>\n<p>A claim for separate assessment must be made at least six months preceding April 1st in the relevant year.\u00a0 It can be made by either spouse.<\/p>\n<p>Under separate assessment, spouses are treated entirely separately for tax purposes. The potential tax savings of joint assessment is available. However , separate returns of \u00a0income are made by the spouses. The personal credits and reliefs available are the same. The total tax payable cannot be greater than the amount which \u00a0would have been paid on joint assessment.<\/p>\n<p>The couple must choose separate assessment, by not later than 1<sup>st<\/sup> \u00a0April in the year. Most tax credits such as personal tax credits are divided equally. Other tax credits are given to the spouse who bears the cost in respect of which the credit is given. The unused credits of one spouses are available against the other spouse\u2019s liability. The\u00a0 \u00a0unused standard rate band can also be transferred.]<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Year_of_Marriage\"><\/span>Year of Marriage<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Married couples are tax singularly, if they marry during the year. However, they receive \u00a0a relief proportionate to the number of whole months,\u00a0 that they are marred, in the year of marriage. A proportionate amount of the relief is available of 1\/12 of the additional tax payable under single assessment, in respect of each month of marriage.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Credits_Bands_Single_Assessment\"><\/span>Credits &amp; Bands (Single Assessment)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under assessment as a single person, also known as separate treatment, each spouse or civil partner is treated as a single person for tax reasons. With this option:<\/p>\n<ul>\n<li>Both spouses or civil partners are taxed on their own income<\/li>\n<li>Both spouses or civil partners get tax credits and the same standard rate cut-off point due to a single person<\/li>\n<li>Both spouses or civil partners pay their own tax<\/li>\n<li>Both spouses or civil partners complete their own return of income form and claim their own tax credits. One spouse or civil partner cannot claim relief for payments made by the other. There is no right to transfer tax credits or standard rate cut-off point to each other.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Credits_Bands_Joint_Separate\"><\/span>Credits &amp; Bands (Joint \/ Separate)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Formerly, spouses who were jointly assessable, were entitled to double allowances (equivalent of credits) and double standard rate bands. Individualisation has restricted the favourable treatment of married couples in cases where one spouse only works or where both work and one earns less than a certain income.<\/p>\n<p>Jointly assessed married persons are entitled to double tax credit, home carers tax credit, double mortgage interest relief and increased standard rate band.<\/p>\n<p>Jointly assessed spouses are entitled to a married tax credit which is twice the single tax credit.\u00a0 The assessed spouse is charge to income as if it was his or her own. The income is calculated however as if it was the income of the spouse to whom it belongs.<\/p>\n<p>Deductions in the calculation of assessable profits may be available to the other spouse if there is insufficient income to be absorbed by the spouse\u2019s income to which this relates. This includes excess capital allowances.<\/p>\n<p>Irish rental losses and foreign trading investment and rental losses are not available to the other spouse.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Non-_Resident_Spouse\"><\/span>Non- Resident Spouse<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If one spouse only is resident in Ireland then the strict position is that that spouse is entitled only to the single persons tax credit and standard rate bands. Joint assessment with a non-resident spouse or civil partner is not provided for under the legislation.<\/p>\n<p>By way of concession, Revenue permit a non-resident spouse who has no other income to be the subject of joint assessment. In this case the residents spouse\u00a0 obtains the married person\u2019s tax credit and the increased standard rate bands.<\/p>\n<p>Where the non-resident spouse has income, the proportionate relief may be claimed. This is based on the proportion of the tax liability based on notional joint assessment that the Irish income bears to the worldwide income.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Home_Carer\"><\/span>Home Carer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The home carers tax credit was introduced as a result of the adverse reaction to the changed to individualisation. <em>\u00a0<\/em>spouse may claim home care tax credit if he or she cares for one or more dependent.<\/p>\n<p>Where one spouse is employed and has income and the other is a home carer, the home carer tax credit of \u20ac1600 (2021) may be available. The spouse concerned must have income of less than \u20ac7200 and a dependent person must be cared for. The increased standard rate cut-off point is an alternative to the home carer&#8217;s credit.<\/p>\n<p>Depending on circumstances, it may be more beneficial to claim the home carer&#8217;s tax credit.\u00a0 The home carer&#8217;s tax credit is available only, where the couple have children or other dependents who are being cared for.<\/p>\n<p>Where the carer spouse has income more than \u20ac5,080 in the year, the home carer tax credit is reduced by half of the amount of the excess.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bands_and_Credits\"><\/span>Bands and Credits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The\u00a0standard rate band for married couples\/civil partners is \u20ac45,800 in 2022. This is taxed at 20% and the balance is taxed at 40%. Where both spouses\/civil partners have income, this standard rate cut-off point can be increased by the lower\u00a0of the following:<\/p>\n<ul>\n<li>\u20ac27,800 in 2022\u00a0<strong>or<\/strong><\/li>\n<li>The amount of the income of the spouse\/civil partner with the smaller income.<\/li>\n<\/ul>\n<p>Where one spouse \u00a0only his an income, the standard rate band is \u20ac45,800. Where \u00a0both have income, the standard rate band is \u20ac44,300 plus the income of the lower earning spouse, up to a maximum of \u20ac26,300. Therefore, the maximum possible standard rate band is \u20ac70,600, (i.e. double the single band). However, this is only available where both spouses are working and each earn at least \u20ac26,300.<\/p>\n<p>The increase in the standard band is an alternative to the home carers tax credit. The increase in the standard rate cut-off point interacts with the Home Carer&#8217;s Tax Credit. If the increased standard rate cut-off point is more beneficial than the Home Carer&#8217;s Tax Credit, it can be claimed instead.\u00a0 Revenue grant\u00a0 that which appears more beneficial.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-11118\" data-postid=\"11118\" class=\"themify_builder_content themify_builder_content-11118 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Assessment Possibilities The three options for assessment of married couples and civil partners are single treatment; assessment under which each is assessed as a single person; joint assessment; where they are assessed jointly generally in the name of one on behalf of both, and separate assessment where spouses are assessed separately, but unused tax credits [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[339],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11118"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=11118"}],"version-history":[{"count":7,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11118\/revisions"}],"predecessor-version":[{"id":11260,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11118\/revisions\/11260"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=11118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=11118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=11118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}