Higher Taxes if I get married?

[BeaufortTJustice]

Re: Higher Taxes if I get married?

For the past 3 years I have figured my taxes both as married filing jointly and married filing separately and the joint method has resulted in a slightly less tax liability overall. By slightly, I'm talking about <$250. I have not, however, figured out our taxes pretending that we are both single, so I can't speak to how much difference that would make.

If you do have children, there are at least two credits available (that I am aware of) that definitely eases your tax burden, and that is the child tax credit ($1k per child up to 3 max?) and the child care tax credit (% based on total spent and income level, max $600, i think). The child care credit is only available to married/joint filers due to the rationale behind it...which is a credit for paying for child care so a spouse can work.

 

[angus63]

Re: Higher Taxes if I get married?

When I was younger, I was a "SITCOM" husband. "Single Income Two Children Oppressive Mortgage". Now I am just a happily married Dad getting by...

 

[tx1961whaler]

Re: Higher Taxes if I get married?

1) She is put into the 25% tax bracket w/ a total increase of 10% taxes on her income. (jointly filed)
2) I get moved up to the 28% tax bracket w/ a total increase 3% taxes on my income. (filed separately)
Please correct me if I am wrong.
-Hostage

Not wrong, but not understanding marginal tax rates. A tax bracket does not mean that the entire income is taxed at the upper rate; only the amount over the dividing point. Plus the rates are different between married and single. An example, just using the tax owed (no deductions, etc):
Say she makes 30K, and you make 68K. 98K total. The tax on 98K if you were married, filing jointly would be 16,869.
Filing single, separately her tax would be 4085 and yours would be 13188, which totals 17,273.
The only way to really find out is to fill out the tax form 3 times; one each for single, and one married filing jointly. Bet you won't find a difference worth considering for a reason for not getting married, so you'll have to come up with another excuse....

 

[aspeck]

Re: Higher Taxes if I get married?

tx1961 ... finally someone hit it. I was going through this thread thinking surely someone would explain it that way. Am in the process of doing my oldest daughter's taxes ... she got married past summer and they were wondering whether to file seperate or jointly. Have a few more things to check on, but as of now, it looks like they are going to be a few hundred dollars ahead by filing jointly.

 

[bassman284]

Re: Higher Taxes if I get married?

Very rare that a married couple would gain by filing separately.

As to the famous "marriage penalty", it wouldn't really apply to that many people, mainly childless couples with fairly high and roughly equal incomes. Also loud voices.

 

[bigdee]

Re: Higher Taxes if I get married?

Don't worry about uncle Sam....Aunt Honey is the one to watch!!

 

[jkust]

Re: Higher Taxes if I get married?

I am upset over being way over taxed along with a very long list of grievances against our Government.

I think that is the understatement of the century. I'm keeping it out of politics so wouldn't say Bush tax rates above or mention government either. If everyone had to write quarterly tax checks as we do, Egypt would look like an afternoon at chucky cheese at least for the 50% of society that pay federal income taxes. Also then take into account the AMT and the fact we get no deductions and write 6 figure checks out to what I believe are no different than thieves. Tax time is not fun over here but marriage is.

 

[Brent S]

Re: Higher Taxes if I get married?

You don't have to be "rich" to pay more for being married. Just have comparable incomes. Yes, I am a "DINK" . It is much better now since they tried to even it out a little. I wrote nasty-grams to all my elected officials when I got married and we paid a combined $3,000.00 more for the priviledge. The politicos were going on about "family values" and charging me for getting married. I like to fanasize that my letter writing helped change it

 

[bruceb58]

Re: Higher Taxes if I get married?

Very rare that a married couple would gain by filing separately.

If you really want to see what the marriage penalty is, you need to look at the amount of tax if you filed single returns for each of you vs one return married jointly.

Problem with filing seperately is that both tax returns have to itemize using schedule A if only one does. You obviously don't have that restriction if both file single.