Tuesday, February 18, 2014

Marriage tax penalty

While I am not married yet, I went ahead and entered my boyfriend's info into turbo tax to see what difference it would make on our tax returns.  I always knew we would pay more as a married couple because of the so called marriage tax but now I know for sure. 

As married couple:
Federal: $4400 back
State: owe $1 
Total: $4399

As individuals:
Federal (me): $5669
State: $502
Federal (him): $1263
State (him): $192
Total: $7570 (-$56 for filing taxes twice) 

We would have to pay $3171 MORE in taxes if married. Thank you government for reminding me why people stay single. I claim 1 on my deductions so this huge return is all due to buying a house last year. My boyfriend claims 0 as he likes a bigger refund. Eventually we will get married because not getting married due to a tax penalty is bogus to me but I will still be irritated about it once that day comes. 

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3 comments:

  1. Nd.chicFebruary 18, 2014 at 5:37 PM

    Its utterly ridiculous how our federal income tax system works. It makes no sense that getting married hurts you on your taxes. Also I don't think that poor people should have to pay federal taxes but they shouldn't receive thousands back because they have a couple kids.

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  2. KasFebruary 19, 2014 at 8:34 AM

    I agree and if I have kids I won't get much if any of a tax break because I make too much money. There is absolutely no incentive for me to get married or have kids based on tax alone. The people getting rewarded to have kids are not the ones who should be. Reward people who can afford the kids in the first place.

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  3. ChitownApril 9, 2014 at 7:38 PM

    That would piss me off too!!!

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