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Tying the knot? Some couples may face a ‘marriage tax penalty’

Source: - Jul 2, 2019


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Tying the knot? Some couples may face a 'marriage tax penalty'

Personal Finance
Tying the knot? Some couples may face a ‘marriage tax penalty’
Published Mon, Jul 1 2019 11:44 AM EDTUpdated Mon, Jul 1 2019 11:55 AM EDT
Sarah O’Brien

Key Points

Depending on your income, state of residence and the credits or deductions you use, you could pay more in taxes after getting married than if you each retained your single filing status.
Although recent changes to the federal tax code have eliminated the marriage penalty for most households, high earners may still pay more as a married couple.
For taxpayers with low or modest incomes, the earned income tax credit can result in a higher bill after marriage.

If you’re heading down the aisle this year, your tax situation is likely the last thing on your mind.

Yet at some point, it’s probably worthwhile evaluating what getting married will mean for your taxes. While many couples will see their taxes drop, some face a “marriage penalty” — paying more than if they had remained unmarried and filed as single taxpayers.

In simple terms, the penalty comes into play when tax-bracket thresholds, and deductions or credits are not double the amount allowed for single filers.

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Category: General Business