Some Couples Do Get a Tax Penalty on Marriage, Check If You Will
Not all couples receive a tax bonus upon marriage. Some actually receive a marriage penalty, which happens when their combined income pushes them into a higher tax bracket. If you are tying the knot and you and your spouse fall into this category, prepare to pay higher taxes while you are single.
Obviously, when you get married, your tax situation changes. For most couples, this means a tax break, but some couples actually receive a marriage penalty . Here’s a calculator to help you figure it out , and if you fall on the penalty side, there’s one more thing to remember – you might owe taxes while you’re single.
One of the most surprising things couples learn when filing their tax returns is that regardless of whether you got married on January 1st or December 31st, the IRS considers you “married” for the entire calendar year.
“The biggest problem for many couples is that they end up paying taxes because they were not paid [during the part of the year they were single],” says Poulos. This is especially true for couples who fall into the higher tax bracket as a result of their combined income, as we saw for a couple earning $ 80,000 each at # 2. They may end up paying more taxes to earn money. for not paying while in their lower single tax tier.
Most married couples will receive a bonus and they won’t have to worry about it at all. Also, as LearnVest explains, even if you are in a higher group, you still receive a higher standard deduction and are eligible for other credits and deductions.
So there is nothing to worry about, but it should be kept in mind when filing your tax return after you have tied the knot. For more details, head over to LearnVest’s full post.