estimators show filing jointly to be much better...is this true married FEers?
It depends. If only one works, or if one makes significantly more than the other, then it is a benefit. Otherwise, it can be a penalty if you make similar amounts of money.
my wife made significantly more than me this year.
I student taught and didn't get paid from Jan-June. Then started getting paid Sept-Dec.
It's a significant increase, like +$4,000 if we go joint
I'm rich, bitches
Good tax software should be able to tell you your tax liability both ways. The one we use at work does it by simply checking a box to turn on the option to produce a comparison information page.
estimators show filing jointly to be much better...is this true married FEers?
It depends. If only one works, or if one makes significantly more than the other, then it is a benefit. Otherwise, it can be a penalty if you make similar amounts of money.
my wife made significantly more than me this year.
I student taught and didn't get paid from Jan-June. Then started getting paid Sept-Dec.
It's a significant increase, like +$4,000 if we go joint
I'm rich, bitches
Yeah, that's a main situation where it is better. The reasoning is thus:
Taxes are progressive. They were also designed at a time when there was only a single household income earner. The concept of "horizontal equity" in taxes says that people in similar situations should pay similar taxes. So if you had a single person making $50,000 versus a married person making $50,000, the married person should pay less in taxes because they are "supporting" two people. So you might have a marginal tax chart that does something like this (taken from 2017 draft tax per income):
Tax for single: $8245
Tax for married: $6571
So the tax is lower for the married couple compared to the single person, even though they make the same amount, in order to compensate for the extra "support" required for the nonworking spouse.
This all works well and good, until you start making similar amount of cash, especially as you make more money. To look at the minor difference at the lower end, say our couple above is unmarried but they live together and might as well be married. Instead of one of them earning $50k, they both make $25k. The tax is $3288 for a total of $6576, five dollars more than if they had been married. The lower income ends the effect is small, but it grows a lot more as the incomes get higher. This also used to be a *lot* worse, but they've been pushing to adjust things the past years to try to reduce the discrepancy as much as possible. Note: This is just the tax owed on taxable income. A number of deductions and other effects aren't or used to not be double for married, which exacerbated this effect. Thus the old so-called marriage penalty.
How can you have any pudding if you won't eat your meat?
estimators show filing jointly to be much better...is this true married FEers?
usually.
Wait. Christian. You aren't married are you?
lol I realized he only asked married FEers, but I have some experience in the tax stuff, but only in Canada, so I guess that makes me doubly unqualified to answer his original question.
estimators show filing jointly to be much better...is this true married FEers?
usually.
Wait. Christian. You aren't married are you?
lol I realized he only asked married FEers, but I have some experience in the tax stuff, but only in Canada, so I guess that makes me doubly unqualified to answer his original question.
I was going to have my mind blown for a second
"So, uh, what are we saying here? If we save LA from a nuclear bomb, then you and I can get together for dinner and a movie?"
but in the US, if you're married, do you have to file jointly? In Canada, you're supposed to report all your spouses' income on your own return and vice versa because the tax credits and benefits are based on the family net income, etc.
estimators show filing jointly to be much better...is this true married FEers?
usually.
Wait. Christian. You aren't married are you?
lol I realized he only asked married FEers, but I have some experience in the tax stuff, but only in Canada, so I guess that makes me doubly unqualified to answer his original question.
I'll marry you Christian and then you can answer this question. Then we can get annulment....mabye
estimators show filing jointly to be much better...is this true married FEers?
usually.
Wait. Christian. You aren't married are you?
lol I realized he only asked married FEers, but I have some experience in the tax stuff, but only in Canada, so I guess that makes me doubly unqualified to answer his original question.
I'll marry you Christian and then you can answer this question. Then we can get annulment....mabye
That's a tempting offer...but I'm good. I mean, you're sweet and all, but I just don't feel that same connection I guess. You know? And it's not you, it's definitely me. But we can still be friends. Let's hang out sometime soon. I'll call you. No, you don't have to give me your number now, I'll look you up....bye. bye.
That's a tempting offer...but I'm good. I mean, you're sweet and all, but I just don't feel that same connection I guess. You know? And it's not you, it's definitely me. But we can still be friends. Let's hang out sometime soon. I'll call you. No, you don't have to give me your number now, I'll look you up....bye. bye.
Breakup Songs Played: "Tell Me Why" - Breaks up Xian and Ahoda
How can you have any pudding if you won't eat your meat?
but in the US, if you're married, do you have to file jointly? In Canada, you're supposed to report all your spouses' income on your own return and vice versa because the tax credits and benefits are based on the family net income, etc.
Have to? No. You choose either married filing joint or married filing separate.
#1 GOAT
