Income Tax worries

posted 3 years ago in Legal
Post # 3
Member
6032 posts
Bee Keeper
  • Wedding: October 2014

Generally if you have one low/medium earner amd one high earner, you end up paying less tax than when you file separately. It’s only when your incomes are fairly equal that you end up owing. Go see a CPA anyway— I’m just saying what’s “usual” and not knowing your entire income/deductions/contributions so far towards 2013 taxes, I can’t say with  any certainty that’s how it will work out for you.

Post # 4
Member
3170 posts
Sugar bee
  • Wedding: May 2012

@Horseradish:  This is what happened with us. My low income was enough to knock him down a bracket and we got a big refund the year after we got married. 

Also keep in mind that what you owe or are owed when you file is just a reflection of how accurately you gauged what you would end up owing throughout the year. See if you can take a look at your W-4 and adjust it if need be to get closer to that break even point. 

Post # 5
Member
312 posts
Helper bee

I’ve never heard of owing more on taxes because of marriage, can anyone elaborate on that? If you both work and claim the same deduction on your w2 before and after marriage doesn’t the amount owed stay the same? 

Post # 6
Member
295 posts
Helper bee

I know one of the things that some married couples have been is that they go through and make up two tax returns one for filing jointy and one for filing separatly and go base off of what would get them more money. 

Post # 7
Member
2891 posts
Sugar bee
  • Wedding: May 2015

@mseagles:  We’re going to owe more because we get knocked up a tax bracket once we’re married. This chart shows the breakdown: http://www.bankrate.com/finance/taxes/tax-brackets.aspx

For example, I’m in the 25% tax bracket and FI is in the 28% tax bracket, but once we’re married, our joint incomes put us in the 33% tax bracket. We definitely need to make itemized deductions!

Since there’s such a disparity in what you make, you’ll probably actually get the marriage benefit (getting knocked down a bracket). You should also get a good deduction for the interest off student loans too. Talk to a CPA since they’ll know your state and federal laws best. 

Post # 8
Member
5199 posts
Bee Keeper
  • Wedding: April 2013

@crisaquarius24:  Between the two of you you’ll likely be better off filing as a married couple.  It’s families with two high income earners who usually pay the “marriage tax.”

 

Post # 9
Member
5697 posts
Bee Keeper
  • Wedding: August 2012

IDK but we make the same amount and last year was our first year filing jointly and it was about the same as our prior year’s returns separate.

Post # 11
Member
1102 posts
Bumble bee
  • Wedding: May 2013

@Natalieh86:  +1

2 people filing jointly who make about the same amount = no affect (unless you are both on the high end of your current single filer tax bracket, than filing jointly will likely bump your tax rate into an even higher bracket)

2 people filing jointly where one person makes a lot and the other person makes much less = the lower income brings the larger income down to a smaller tax bracket.

 

(I’m an accountant (an auditor not a tax accountant) but this is my knowledge from what I’ve learned in school and from experience).

 

 

 

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