(Closed) Marriage Tax Penalty Makes Us Want A Private Ceremony – not a legal marraige

posted 6 years ago in Money
  • poll: Which would you do?
    Suck it up and pay the extra $600-750/month in taxes for the rest of our lives (or at least 30 yrs) : (26 votes)
    50 %
    Have ceremony but wait to get legally married. Put saved money to home down payment/student loans : (26 votes)
    50 %
  • Post # 3
    Member
    3598 posts
    Sugar bee
    • Wedding: September 2018

    Because I don’t know enough about these things, and because I live in the UK I am unable to help with specifics.

    However, regarding your concern if one of you goes into hospital.  Can you get Power of Attorney? You for him and him for you.  Then if, god forbid, it came to it, you’d be able to make decisions on his behalf and vice versa.

    Post # 4
    Member
    1252 posts
    Bumble bee
    • Wedding: November 2011

    Ha – I wish I’d thought of that!  Just filed our first tax return as Married and it was PAINFUL!  No way around it, it is ridiculous that they penalize a dual income household for being married, I think its discriminatory! 

    Post # 7
    Member
    1026 posts
    Bumble bee
    • Wedding: July 2014

    I feel like this would be cheating the system. Theres a reason those taxes are in place, and takes from other people who also had to do this go towards things that you use every day. 

    Can you crunch the numbers again? This seems like a lot. I though you get a ton of tax CUTS when your married?

    Post # 8
    Member
    5494 posts
    Bee Keeper
    • Wedding: August 2011

    That totally sucks. We had the opposite happen with our taxes.  We owed way less this year filing married than we did last year, filing separately.  Nothing else changed.  

    Post # 9
    Member
    4046 posts
    Honey bee
    • Wedding: November 1999

    Oddly, I ran our taxes as being married and I think we came out ahead, lol.

    Perhaps talk to a financial advisor…maybe you can contribute more to a 401k or IRA and duce your taxable income?

    Post # 10
    Member
    5663 posts
    Bee Keeper
    • Wedding: August 2012

    Agreed, I thought you got a lot of benefits from tax cuts, I’ve never heard of a penalty for getting married! And I would not not get married because of taxes, it just is what it is. Taxes are an unavoidable necessary evil.

     

    I’m interested to hear what someone knowledgeable about taxes says?

    Post # 12
    Member
    1252 posts
    Bumble bee
    • Wedding: November 2011

    @teabiscuit:  The tax rates generally benefit married couples where one spouse doesn’t work or makes significantly less than the other. I’m sure it was thought of as a benefit 50 years ago when women stayed at home, but these days it’s a penalty for most…  I can assure you that my DH and I are using no more government benefits or services than we were the day before we got married, if anything the government is cheating us, not the other way around…

    Post # 13
    Member
    686 posts
    Busy bee
    • Wedding: May 2012

    @ShortnSweet:  We’re in the same boat.  Beginning our first pay period in January, FH and I EACH began having an extra $50/week withheld from our paychecks because of all the money we’d owe at the end of the year due to the tax penalty.

    If there’s no legal reason to do so, then don’t.  For us, it was important, but we feel married regardless.  We work for the same employer, and have excellent health care.  There is no legal benefit.

    @teabiscuit:  You save money if you have different incomes; if your incomes are very similar and over a certain amount, that’s when you get the tax penalty.  It’s not an explicit tax penalty that’s added onto your taxes, it’s just that the numbers don’t work out in the favor of a small percentage of couples.

     

    Post # 14
    Member
    520 posts
    Busy bee
    • Wedding: May 2012

    We come out ahead too, since I am a student and not working. I don’t put a lot of stock in the government saying I’m married, but I would probably still get married regardless of the financial implications because there are legal implications to being married. What if something happens to one of you, but you were never legally married? I wouldn’t want to worry about that. 

    The topic ‘Marriage Tax Penalty Makes Us Want A Private Ceremony – not a legal marraige’ is closed to new replies.

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