Post # 1
My boyfriend and I each make less than 30k a year. Last year I had to pay $900 out on my taxes because my second job wasn’t taking anything out!!! That pretty much crippled me for the year. I had already quit that job and I changed my tax status at my full-time job to a “0” immediately after, so hopefully I won’t be getting slammed this year.
We were planning on getting married in 2014 but we can’t afford it. I really don’t care because I didn’t want to have a wedding that bad in the first place but I feel sorry for him because he really wanted to have a party (we were going to have something pretty cheap– at least as cheap as you can get for 100 people, but he finally realized we can’t even afford that).
His employer recently dropped his health insurance, and now he has to buy his own policy by March 31st or get fined. If we got married now (courthouse, no party) he could probably go on my insurance and it will probably be cheaper than each of us having our own. And we could file our taxes as married this year… and maybe get a break for it? I’m so ignorant about financial stuff because all my money goes toward basic needs… I don’t make any extra to invest or whatever.
We were kind of set on getting married in 2014 because that’s when our 10-year dating anniversary is, but if this is going to save us a bunch of money then we might just do it sooner. I don’t know if it’s worth it though. I’ve read that when someone rich marries someone poor, the poor person brings the rich one to a lower tax bracket, but we both make absolute shit for money.
Post # 3
- Wedding: November 2013 - St. Augustine Beach, FL
@lampshade: It really depends on whether you get tossed into a higher tax bracket once married and whether you both are claiming dependents. I looked into our situation and we should actually get a tax break this year since we both claim zero and our combined income is below the the next income cutoff. But we won’t know for sure until early February when we file our taxes. If you really want to know take your most recent pay stubs and last year’s tax returns to a CPA to discuss whether you will be subject to the marriage penalty.
Post # 4
Depends on your income and situation. We sure as hell don’t. We pay more.
Post # 5
I don’t think the poor one automatically brings the rich one to the lower bracket. It really depends on what you are each making. We ended up not getting a break and also not paying more.
Post # 6
This doesn’t take into account everything but it helps! I plugged in possible numbers for us and it looks like we would get a benefit. I think we’ll likely always get a benefit, even though it’s small, because I’ll make half of what my SO makes pretty consistently as we age.
Post # 7
It didn’t make a difference for us.
Post # 8
@soontobemrsm11: Well that calculator says nothing is going to change. At least we’re probably not going to be paying MORE as a married couple.
We make the same low salary so neither of us is pulling anyone into another bracket. Can’t afford a house, can’t afford kids, can’t afford anything. 🙁
Post # 9
@lampshade: Apprently it also depends on which state you live in! Not all states have this marriage penalty:
I was in the 17% tax bracket, so was H, but then when we married, we got bumped to the 25% tax bracket filing jointly. We put a lot into pre-tax retirement accounts, so even though we’re approaching the 28% bracket if H gets a raise, those pre-tax contributions will keep us hovering in 25% for a long time.
However, even in my poorest years and college student years, I never owed more than $200 but usually got money back (single, withholding 1). Maybe change your withholdings? I made less than $30k for most of my working career!
I’ve read that when someone rich marries someone poor, the poor person brings the rich one to a lower tax bracket, but we both make absolute shit for money.
Joint incomes fall into their own bracket which has different ranges than single brackets, But if you’re in the 15% now, then adding yours and your H’s together you’d probably still bein the 15%. Check out this table:
Read more: http://www.bankrate.com/finance/taxes/tax-brackets.aspx#ixzz2kqLf3wIB
Post # 10
@lampshade: On thing you can do is try a tax website like HR Block or Turbo Tax. Just fill i your info as single, then as married, and see if there is a big difference. Keep in mind there are often lst minute tax laws passed that may not go through until Jan to be updated in the software, but it will give you a basic idea.