I got married in 2023 and I’m just after meeting the accountant to sort out my 2024 tax return. Last year was a good one for the beef, but it also means I’m facing a bigger tax bill than expected. What’s adding to my frustration is that my wife has a few dividends and it looks like I might end up paying tax on her income too. Before we got married, I only had to worry about my own return.

Surely there’s a way to keep our taxes separate like before?

ANSWER: You’re not the first farmer to ask this – and with prices up and profits looking healthier, tax planning is becoming more important than ever. When it comes to married couples or civil partners, Revenue gives you three different ways to be assessed for income tax: joint assessment, separate assessment, and separate treatment. Each comes with its own rules and quirks, and the choice you make can have a big impact on how much you owe – or how much money you get back.

Joint assessment

Once you’re married and living together, you’re automatically treated under joint assessment, unless you tell Revenue otherwise. Under this system, one spouse becomes the ‘assessable spouse’, usually the one with the higher income, and the other spouse is referred to as the ‘non-assessable’ spouse. Here’s how it works:

  • All income is added together and taxed as one unit.
  • The assessable spouse claims the full tax credits, bands and reliefs, including the increased standard rate band (€51,000 in 2024, assuming both spouses have income).
  • You can allocate credits between you to reduce your combined bill.
  • Any refund due for either of you splits between yourself and your wife according to income.
  • The assessable spouse is also liable for any balancing payment.

    • So, in your case, if you’re the assessable spouse, you’re seeing the full tax bill – even on your wife’s dividend income – land at your door. That doesn’t necessarily mean you’re paying more tax overall, but it can certainly feel like it if her income pushes you into a higher bracket. This is usually the most tax-efficient option, especially when one spouse earns more than the other or doesn’t use all their tax bands and credits.

    Separate assessment

    You can opt for separate assessment. It’s important to note that this still treats you as a couple for tax purposes, but shifts the responsibility and paperwork.

  • Both spouses still get the benefits of the married tax band and credits, but they’re divided between you either automatically by Revenue or by mutual agreement.
  • Each person files their own tax return, and is assessed only on their own income.
  • Each of you is responsible for your own tax, including refunds and payments.
  • Crucially, you’re still assessed as a couple, so this option keeps the tax efficiencies of being married.

    • It’s a nice middle ground: you still get the best bang for your buck tax-wise, but you’re not on the hook for your spouse’s tax bill.

    Separate treatment

    This is the nuclear option – you can elect for separate treatment, and Revenue will ignore the fact you’re married. This means:

  • You’re both treated as single people for tax.
  • You lose the married person’s band and credits, and cannot transfer unused credits.
  • You only pay tax on your own income – and likewise, only claim your own refund.
  • In many cases, this leads to a higher overall tax bill, especially if one person earns significantly more than the other.

    • It’s rare to see farmers go down this route unless both spouses have high, equal incomes and want total financial independence.

    What about refunds?

    If it’s a joint assessment, refunds go to the assessable spouse split by the ratio of the income of each spouse.

    For a separate assessment, each spouse receives their own refund, and for a separate treatment refunds are based on your own single income. But here’s the critical detail – the deadline.

    The window to elect separate assessment closed on 31 March 2025. To change your method for 2026, you’ll need to inform Revenue anytime between 31 October 2025 and 31 March 2026.

    There is no such rule for separate treatment but again, it’s rarely the best option.

    What should you do now?

    Even though you’re locked into joint assessment for this year, don’t panic. Meet with your accountant and double-check that your wife’s dividend income is being taxed appropriately. Make sure tax credits are optimally allocated between you to minimise your liability or potentially boost any refund.

    Marty Murphy, head of tax with ifac

    Marty Murphy is head of tax at ifac, the professional services firm for farming, food and agribusiness.