Tax Credits & Reliefs >> Married Persons Tax Credit

Tags: joint assessment, separate assessment, single assessment

This credit is available for all married couples living together that are not continuing to pay their tax as single persons. Married couples have different options as to how they should pay their tax. There are 3 different options for married couples for dealing with their tax affairs. These are known as Joint Assessment, Separate Assessment and Single Assessment. 

Joint Assessment

The majority of couples pay their tax on this basis. One spouse is responsible for completion and submission of tax forms to the Revenue and for paying any tax owed to the Revenue. All tax credits are normally given to this spouse and if the other spouse is working they receive basic tax credits only against their earnings e.g. PAYE allowance for PAYE earners. 

Separate Assessment

This is not to be confused with separated couples. A married couple can elect to be taxed as single people during the tax year subject to reexamination after the end of the tax year to see if they would pay less tax under the Joint Assessment basis. If so they will get a refund. 
This option can lead to cash flow disadvantages between spouses if there is a substantial difference in their incomes. However, provided you claim the reexamination of your joint tax position after the end of the tax year any tax overpaid during the tax year will be refunded to you. 

Single Assessment

As the name implies this option means each spouse is taxed as though they remained single. Your tax affairs are never joined together. This can result in more tax being paid than under the Joint Basis and Separate Assessment Basis. This option is not chosen very often by married couples because unlike the Separate Assessment Basis there is no option for reexamining your tax affairs on a Joint Basis after the end of the tax year. 

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