If you’re married and decide to separate or divorce, there will likely be tax implications. If you believe your separation will be permanent, you should contact Revenue to make the tax adjustments for the year in which you separated and for subsequent tax years.
Depending on how your tax was assessed as a married couple, there are a number of different ways in which you can be taxed during the year of separation. If the couple is assessed as single persons, there's no change in their tax assessment.
However, if you and your partner are taxed under a separate assessment, income up to the date of separation is assessed in the normal way and you can transfer to each other any unused tax credits and rate bands that apply.
After the date of separation and for the remainder of the tax year, each spouse will be treated as a single individual and will receive the single person’s tax credit.
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If you’re the assessable spouse, you’ll be entitled to the married person’s tax credits and double rate bands for the full year in which you separate. You’ll be taxed on your own income for the full year as well as your spouse’s income for the year up until the date on which you separated.
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If you’re the spouse who wasn’t assessable, then you’ll be taxed on your own income from the date of separation. You’ll be entitled to the full single person’s tax credit and taxed under the single rate bands.
Taxation in the years that follow
If you’re separated, depending on your circumstances, you may choose to be taxed as a married couple or single person after the year in which you separate. Maintenance payments are one key factor in deciding which tax arrangement will apply.
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