Friday, March 14, 2014

Now get your tax right and save up to €4,620 per year.
Savings like that are sure to lead to marital bliss. And the example of €4,620 is a very realistic saving on getting married for a High Rate tax payer with a stay at home partner. While in other cases it may make no difference to the amount of your pay that is taxed, changes in circumstances can easily change that. 

1. Nothing changes immediately … In the world of tax, the Tax man treats you as a single person until Jan 1 of the following year. Maybe treat it as another wedding anniversary date and celebrate it! 
2. There are 3 different ways (called basis of tax assessment) of being taxed as a married couple – make sure you choose the right one – choose the wrong basis and it could cost you that €4,620 a year in tax, with no come back. 
3. Just Married? While the tax man will not treat you as married straight away, you may get a tax refund through a “Year of Marriage” review. 
4. Some Tax Credits are transferable between spouses – that’s part of what can make a big difference to how you are taxed. 
5. You can also transfer tax bands between spouses. What this means is that you may reduce the amount of tax paid at the higher rate, now 41% 
6. Stay at home parent? If you earn less than €5,000 a year and have dependent children, then your partner can get extra tax credits. 
7. Dads! Guys miss this one a lot as many dads see “Stay at home parent” and read “Housewife”. But if you are out of work and earned less than €5,000 in the year, then make sure your wife gets that tax credit for her work. Could be worth €900 a year. 
8. Got Married and your home was in only one person’s name? You could double your mortgage interest relief now you are married. 
9. Some Tax Credits are worth double now you are married, some will stay the same. Make sure you get the most back. 
10. Lastly, Just maybe the tax man has a romantic streak – it pays to be married! Every week we review taxes for co-habiting couples that will have paid more than €10,000 more in tax over 4 years than they would have if they had been married. Now, there’s an excuse to get married – and a reason to splash out on an even bigger Diamond. ;-)

This article is courtesy of John in Red Oak Tax Refunds