(Closed) Married bees & Tax season

posted 4 years ago in Finances
Post # 16
Member
528 posts
Busy bee

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Foreverblonde345:  Without knowing more about your specific situation, it’s tough to give you great tax planning advice.  Contributions to certain types of retirement plans (401(k), SEP, SIMPLE, etc), FSA’s, and HSA’s are all good ways to reduce your taxable income and I’d definitely recommend maxing out your contributions each year.    

Post # 17
Member
9463 posts
Buzzing Beekeeper

We’ve postponed getting married bc of the marriage penalty (which’ll be at least $35k/year for us and that’s only federal). Sucks, but we’ve been together over 8 years now and being legally married vs. not doesn’t matter to us at this point (and I’d rather pocket that $$$). We do want to be legally married before we have a baby, so we’ll schedule a meeting with an accountant then.

Post # 18
Member
893 posts
Busy bee

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mrsyeti:  Thanks.  We do maximize our contributions.  We have a financial planner and a tax accountant but even still I figured that we had to be missing something huge because our tax bill is outrageous.  We even increased our withholding three years in a row.  Idk, I guess I have to work on my financial trust issues – I personally know victims of Ponzi schemes and other wrong doings so we use a FP but I still don’t leverage them to their full capabilities.  Maybe if I did our tax liability would decrease.  But I also don’t want to do anything illegal, unsavory or even in the gray zone.  First world problems I guess.  

Post # 19
Member
484 posts
Helper bee
  • Wedding: September 2016

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TheGridMonster:  Ah, did you have a wedding but not get legally married? Are you in biglaw? Have you considered never getting legally married and just contracting your way into the marriage rights? 

I’m sorry if that’s all super nosy, and feel free to message me instead. But I’m curious to hear from other people who will have a significant marriage penalty. 

Post # 20
Member
683 posts
Busy bee

I was suprised as people have told me married filing jointly is the way to go. I claim 0 and single at work and we come out even if we file jointly. Good thing we didnt change to married at work or we would be owing. 

But if we file separately we get back a pretty good size return. So who knows. Its so screwed up. We make almosy equal and even comparing our 2 tax returns when we go through it separately, we get back drastically different amounts. 

Post # 21
Member
9463 posts
Buzzing Beekeeper

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ABusyBride:  No worries, I like nosey!

Fiance brought up the idea of having a wedding but not legally marrying, but I nixed that pretty quickly because I don’t even want a wedding. My ideal would be just going down to the courthouse one day, so if you take out the “making it legal” part of it, I’m not at all into the bells and whistles that are left. And we’ve been together so long now that all our close family members and friends see us as a married couple already.

I am in Biglaw and will be here for awhile. FI’s not (thank god, we’d probably murder eachother!).

We did talk about never legally marrying (or at least not until we’re retired) and contracting around it for all the rights we care about in the meantime. But Fiance made it really clear that when we have a baby, he wants to be legally married, and since we’ll probably TTC within a couple years, we’ll just wait it out. But idk, man. If an accountant can’t bring that marriage penalty down significantly, we might have to think about that option more…

I really hate the marriage penalty. Really really do!!

Post # 22
Member
5870 posts
Bee Keeper
  • Wedding: April 2013

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cristinamarie92:  Some married couples are subject to a marriage “penalty” and some have a marriage “bonus” when it comes to tax time.  Check out this site to see which category you’ll fall into: http://marriagetaxcalculator.com/

Many couples have no or a very small impact.  My DH and I are hit with a $1000 marriage tax, which isn’t a big deal.  I’m sure that in future years we’ll have a marriage bonus and it’ll all even out.

My suggestion is to no sweat it too much and to just run your taxes in Turbo tax or H&R block software twice: once do married filing jointly, once do married filing seperately.  Or if that’s too much work, just file jointly.  For the majority of couples that is the best and simplest way to go.

Post # 23
Member
273 posts
Helper bee
  • Wedding: June 2015

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cbgg:  that calculator was helpful thanks for postings it

How easy is it to use Turbo Tax the year you get married and change your name? I bought a house in 2014 and it wasn’t too bad for that but filing jointly after getting married and name changes halfway through the year seems more complicated  

 

 

 

 

Post # 24
Member
5870 posts
Bee Keeper
  • Wedding: April 2013

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Amajune: Good question!  I have no idea, didn’t change my name.

Post # 25
Member
484 posts
Helper bee
  • Wedding: September 2016

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TheGridMonster:  Ooh, this is helpful, thank you! We’re getting married in September, and considering not doing it legally, since the legal aspect of being married doesn’t matter that much. I don’t know a lot of people in this situation, so it’s nice to hear from others!

I’ll be in Biglaw once I graduate, but Fiance is in med school. Agree that being with another lawyer sounds terrible.

Post # 26
Member
1901 posts
Buzzing bee
  • Wedding: October 2013

We were hit HARD when we got married. We make the exact same amount, have no kids yet, and no house. We owe double what we paid into taxes and we were having the maximum amount taken out of our paychecks. So we have to request an ADDITIONAL amount above that to even break even. It has me so incredibly pissed off that we did everything right and they STILL need more money from us

Post # 27
Member
136 posts
Blushing bee

When you folks say “hit with a penalty” do you mean you pay that amount more when filing taxes?

Post # 29
Member
3535 posts
Sugar bee
  • Wedding: December 2015

DH and I make roughy the same amount (individually it doesn’t seem like that much; combined it’s six figures). We both have to take an additional $100 per paycheck. 

Post # 30
Member
2869 posts
Sugar bee
  • Wedding: November 2015

We just did our taxes a bit ago expecting the worst. My friends made is seem like we were going to get KILLED with paying in. Together, we make about 80K. I claim 0, he was claiming 2. We still walked out with some money which was a’ok in my book! We did get a state credit for filing together, but not sure if everyone gets that.

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