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What is the marriage penalty

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can someone explain this to me. what is the marriage penalty for taxes and how does it penalize people?

The marriage penalty basically means your paying more in taxes when your married (a husband and a wife) then when the two of you were living single.

 

Its a pretty ridiculous thing and to me their shouldn't be a marriage penalty.

 

For example:

Man: Pays 20,000 in taxes a year

Women: Pays 20,000 in taxes a year

Total = $40,000

 

This is when they are going out.

 

Now they get married

Husband and Wife: 45,000 in taxes a year

 

They now file jointly, which means their incomes are combined and your pooled into a higher tax bracket. At least thats the way I understand it.

  • Author

but couldn't you just file as married filing separately to avoid this?

What is the marriage penalty?

 

Your wife :unsure:  :ph34r:

Boy I hope your wife doesn't read the boards for your sake, especially if she doesn't know that green means sarcastic. ;) :lol:

but couldn't you just file as married filing separately to avoid this?

No because the standard deduction is lower for "married filing separately" - which means that more of your income is taxable and you end up paying more than if you just filed together.

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