(Closed) Marriage Penalty Tax

posted 7 years ago in Married Life
Post # 17
Member
2450 posts
Buzzing bee
  • Wedding: October 2012

i think this is stupid. i don’t understand why a piece of paper that says ‘married’ means we should have to pay in more than when we were living together without that magic paper.

even though we didn’t change our with-holding (still with holding at the higher single rate with 0 dependents)… jointly we are getting back less (together) than either of us did alone. about 1,100.

Post # 18
Member
231 posts
Helper bee

@sienna76:  Contact your HR/payroll department and tell them you want to make a change on your W4.  DH & I kept our withholdings as single with 0 exemptions to make sure they withheld enough.  We’re getting back about $4K total between federal and state (of course part of that is also due to the fact that we bought a house in 2012 and got to itemize deductions for the first time ever).  

Post # 19
Member
923 posts
Busy bee
  • Wedding: January 2013

We’re actually considering filing as married for last year, even though we didn’t get married until January.  We can do that because we live in a state that recognizes common-law marriages.  It’ll mean that we get back about $1500 more than if I filed single.  Darling Husband doesn’t work and goes to school, so that’ll help out a lot.

Post # 20
Member
227 posts
Helper bee
  • Wedding: April 2013

This post just reminded me how i hate the marriage penalty tax. We owe this year 13k. if we werent married we would of pocketed that amount back. I hate taxes!

Post # 21
Member
6117 posts
Bee Keeper
  • Wedding: August 2012

@mcmillan0529:  Thanks for the reply!  We’re at single and 1 at the moment.  I am actually OK with getting just $200 back.  We prefer to get back thousands and want the most of our paycheck to come to us (rather than in one big refund).  But it would be nice to even out that swing a little more so that it’s still $200 or less in a refund.  A tax lady on here said to make one of us married and 1.

Post # 22
Member
18628 posts
Honey Beekeeper
  • Wedding: June 2009

We have owed for the past few years.  Doesn’t help that we have complicated tax stuff!

Post # 23
Member
18628 posts
Honey Beekeeper
  • Wedding: June 2009

@cheetah2b:  No it’s for anyone married filing jointly that might get affected.

Post # 25
Member
2457 posts
Buzzing bee
  • Wedding: September 2012

What exactly is the difference between filing married jointly and separately?

Darling Husband and I both work in entertainment, so our returns the past few years, altogether, have been around $8k-$9k, and our tax lady says that’s not going to change much this year.

Post # 26
Member
18628 posts
Honey Beekeeper
  • Wedding: June 2009

@StephieBee:  When you file seperately, you lose out on a lot of deductions and in most cases end up paying more in taxes.

Post # 27
Member
2268 posts
Buzzing bee

@ThreeMeers:  That sucks. Do you own a home? Did you have the CPA deduct your yearly property taxes from your income? That’s a tax break not a lot of people take advantage of, and it could put you into a lower tax bracket thus making your marriage penalty lower. Even if it didn’t it’s still a tax deduction you want to take advantage of.

http://www.investopedia.com/financial-edge/0112/how-to-deduct-property-taxes.aspx#axzz2JUaVlR28

Post # 29
Member
2680 posts
Sugar bee
  • Wedding: September 2012 - Southern California

We are getting back just about $2,000 betweent the federal & state :].  We also didn’t change our withholding status either at our jobs.  But with that said, we also don’t fall in a very high tax bracket for just the two of us [fortunately? unfortunately? haha] so that’s probably mostly why!

Post # 31
Member
2268 posts
Buzzing bee

I hear ya. We don’t have any kids, so we don’t get those deductions, and we aren’t home owners yet. We aren’t married yet, but I really hope we won’t get screwed when are married. We will hopefully own a home in the next 2 years (but no kids for us, ever). Maybe this tax will be gone soon. Supposedly it won’t be around for the tax year of 2013, unless it isn’t fixed this year…

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