Calculate If You Will Receive a Marriage Fine or Bonus at Tax Time
Most people think marriage is a big tax break. The idea is that you combine both income and pay a single reduced income tax. This is true in many cases, but not in all. This calculator will tell you if you can expect to receive a bonus or penalty when it comes time to file your tax return as a married couple.
Simply put, a marriage penalty occurs when your combined income pushes you and your spouse into a higher tax tier. In this case, you end up paying more by filing together than if you filed each individually.
To help you figure it out, the New York Times has developed a calculator that shows you how much more or less you can expect to pay in taxes, filing together or individually.
The calculator is based on a chart that shows when a penalty or bonus occurs based on income and income distribution (percentage of total income you earn compared to your spouse). As you enter numbers, the calculator shows you where you are on this chart.
As you can see in the example above, the fine is usually applied in low- or high-income households. Couples who earn somewhere in between can count on a bonus. And when the split is roughly 50/50, the difference in joint versus individual pitch is pretty minor.
It’s worth taking a look before deciding whether to serve alone or together. Check it out at the link below.
Tax Day: Are you getting a fine or a marriage bonus? | New York Times