Tuesday 20 February 2018

Couple living together

Income €122,000

Verdict €211 monthly loss

Carol and Eoin are living together in rented accommodation paying €1,200 a month in rent. They are not married. Carol is self-employed and earns €85,000. Eoin is a civil servant and earns €37,000. Carol and Eoin will be affected by the reduction in tax credits and reduction in the married person tax band.

They will also be affected by the proposal to introduce a Universal Social Charge in 2011, which will replace Health Levy and Income Levy.

How it compares



Gross income



Pension levy



Taxable income



Income tax (before credits)



Total credit






Universal social charge

(Income and health levies)



Net income



Total deductions

percentage of gross income



* The pension levy is not tax deductible for PRSI and the Universal Social Charge with effect from January 1, 2011.

** It is assumed in the above calculations that the rental credit is reduced by 20pc.

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