Once you are married, it may be worth contacting your local tax office to advise them, as you may be due a tax refund!
In the year of marriage, both partners are treated as single people, if the result of your assessment as single people is greater than the tax you would pay if you were assessed as a married couple, a refund of the difference is due to you.
This rebate usually occurs where a couple are taxed at difference tax rates and unused tax credits can be availed of by the other spouse.
Whether you are a married couple or a single person with more than one source of income, you have certain rate bands and credits available to you with regards to Tax and USC. In order to ensure you do not overpay tax these allowances should be allocated according to the level of income between spouses and/or different sources of income, subject to Revenue limits.
After the year of marriage review, you can opt to be treated as jointly assessed, separately assessed or as a single person. We would advise to get advice on what treatment suits your situation.
So, you want to be jointly assessed?
Joint assessment is the most beneficial for a married couple. Tax Credits, reliefs and rate bands can be allocated between you and you are assessed on your joint incomes. You will need to select the assessable spouse between you, which is usually the higher income earner. All filing of returns and payment of tax due is completed under the assessable spouse.
So, you want to separately assessed?
When you are separately assessed, both you and your partner are taxed as single people. Tax Credits, reliefs and rate bands can still be allocated between you, but you will both complete a single return. If eligible, the following tax credits are divided equally between you both;
- Married or Civil Partner’s Tax Credit
- Age Tax Credit
- Blind Tax Credit
- Incapacitated Child Tax Credit
So, you want to be assessed as a Single Person?
This is also known as separate treatment, where you and your partner are taxed and complete returns as single people. Tax Credits and standard rate band due as based on a single person. There is no option to transfer unused tax credits, reliefs or rate bands to your spouse or civil partner. Also, if you have children, you cannot claim Home Carer Tax Credit.
Under this treatment, if you do not use all of your personal tax credits, you may end up paying more tax as a couple than you would if jointly or separately assessed.