You can benefit by thousands if you have a second household income
Did you know that you can save up to €5,260 in tax if you are married or in a civil partnership and both people have income?
Simply put, if you are taxed as a couple, you are entitled to an extra €26,300 per annum at the standard rate of 20% tax as opposed to the higher rate of 40% if there is a second household income. This is cash a benefit of €5,260.
For example, let’s suppose Kate and Sam are a couple for tax purposes and Kate is the main income earner. Once Kate’s earnings hit €44,300, she is liable to tax at 40%. So, everything she earns over and above €44,300, will be taxed at 40%.
However, if Sam chooses to, he can earn up to €26,300 at 20%.
So, if Kate earns an additional €26,300, she pays 40% tax but if Sam earns it, he pays just 20%.
So even though household income is the same, Sam earning €26,300 of the income saves the household €5,260 on tax.
This benefit only happens if the first earner earns in excess of €44,300, and to get the full benefit, the second income earner must be earning €26,300. If earnings are below these thresholds, the benefit is reduced accordingly. The couple must be married or in a civil partnership for the benefit to apply.
Part-time jobs can really boost a household’s income as you get all of the tax savings above and yet expensive childcare costs can be avoided by organising working times around school times. So if you do not currently have earnings, it is well worth considering how you could could earn anything up to €26,300 to reap the benefits above. And where better to start than by registering on www.part-time.ie, create a job alert and don’t miss out on jobs in your area.