A lot of couples prone to marriage penalty
01-10-2015, 02:14 AM
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A lot of couples prone to marriage penalty
Newlyweds and already-weds should be familiar with the marriage penalty, where the tax implications of legal marriage mean paying more. Who will pay it modifications year-to-year, thanks to altering tax codes, but there are ways to determine if that's coming down the pike. Article resource: avoiding newspaper online pay walls.
Penalty for getting married
People who are looking at tying the knot, jumping the broom, getting married in a fever, hotter than a pepper sprout, should know about something known as the “marriage penalty.” The marriage penalty isn't really so much an actual punishment for a wrong, rather a tax implication of marriage.
The marriage penalty, in short, is where a couple who have gotten married get bumped them into a higher tax bracket due to combined incomes. As a result, they could owe more and end up having to cut Uncle Sam a check. Modifications in tax codes may also make a married couple end up owing when they used to get refunds.
Back to normal programming
The marriage penalty is actually making something of a return, due to recent modifications in the tax code, according to Yahoo Finance, which were part of that whole “fiscal cliff” nonsense. Due to said changes, a marriage penalty could apply to a wide range of people, ranging from those on working-class incomes and the rich and at that, mostly the very prosperous.
Obviously, everybody who gets the marriage penalty will complain about it despite the belief that it does not impact the large population of prosperous very much. Many people who get the marriage penalty make well over $200,000, so it really should not impact them that much.
However, there are some situations in which lower-income couples might incur it. For instance, according to NBC News, say a female with two children under 13, making $10,000 per year, marries somebody who makes $30,000 per year. With no other deductions, a marriage penalty is $1,000. However, a couple where one spouse makes $100,000 and the other makes $20,000 with two children under 13 will get a refund.
Find it out on your own
Figuring out how tax modifications will affect you financially is essential. That is why the Tax Policy Center is there to help, according to NBC News. It has a website that lists a marriage penalty calculator on it. It is a good way to check and figure out how you will be affected after your marriage or determine if marriage is going to hurt you too much to be worth it.
Sources
NBC News
Yahoo Finance
Tax Policy Center Marriage Penalty Calculator
Penalty for getting married
People who are looking at tying the knot, jumping the broom, getting married in a fever, hotter than a pepper sprout, should know about something known as the “marriage penalty.” The marriage penalty isn't really so much an actual punishment for a wrong, rather a tax implication of marriage.
The marriage penalty, in short, is where a couple who have gotten married get bumped them into a higher tax bracket due to combined incomes. As a result, they could owe more and end up having to cut Uncle Sam a check. Modifications in tax codes may also make a married couple end up owing when they used to get refunds.
Back to normal programming
The marriage penalty is actually making something of a return, due to recent modifications in the tax code, according to Yahoo Finance, which were part of that whole “fiscal cliff” nonsense. Due to said changes, a marriage penalty could apply to a wide range of people, ranging from those on working-class incomes and the rich and at that, mostly the very prosperous.
Obviously, everybody who gets the marriage penalty will complain about it despite the belief that it does not impact the large population of prosperous very much. Many people who get the marriage penalty make well over $200,000, so it really should not impact them that much.
However, there are some situations in which lower-income couples might incur it. For instance, according to NBC News, say a female with two children under 13, making $10,000 per year, marries somebody who makes $30,000 per year. With no other deductions, a marriage penalty is $1,000. However, a couple where one spouse makes $100,000 and the other makes $20,000 with two children under 13 will get a refund.
Find it out on your own
Figuring out how tax modifications will affect you financially is essential. That is why the Tax Policy Center is there to help, according to NBC News. It has a website that lists a marriage penalty calculator on it. It is a good way to check and figure out how you will be affected after your marriage or determine if marriage is going to hurt you too much to be worth it.
Sources
NBC News
Yahoo Finance
Tax Policy Center Marriage Penalty Calculator
