Tax Refunds after Marraige

If the tax you pay as two single people is greater than the tax payable if you were taxed as a married couple, you can claim the difference. If you were married in 2009, any tax refund due to you will be calculated after 31 December 2009. If you get married in 2010, any tax refund due to you will be calculated after 31 December 2010. The standard rate cut-off point for married couples is €45,400 in 2010 (the same rate applied in 2009). This amount is taxed at 20% and the balance is taxed at 41%. Where both spouses have income, this standard rate cut-off point can be increased by the lower of the following:

-€27,400 in 2010 (the same rate applied in 2009) or
-The amount of the income of the spouse with the smaller income.

Example of Taxation of a Married Couple:

Thomas Income €48,000 + Donna's Income €24,000 = €72,000
Standard rate band
Thomas €45,400 x 20%   = €9,080
2,600 x 41%                   = €1,066
Donna €24,000 x 20%      = €4,800
                                     = €14,946

Tax Credits Married Tax Credit  €3,660
PAYE Tax Credit x 2                  €3,660
                                             = €7,320

Tax Payable €14,946 - €7,320 = €7,626

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