Sunday, January 17, 2010

Why are we penalized for being married when it comes to taxes?

I ran my taxes through, just to see, as single (not MFS) and married filing jointly. We would get $1300 more if we each filed separately as single with my wife claiming our child than if we filed as MFJ. Thats crazy. Wheres the benefit to being married? It almost makes us want to divorce and just act as domestic partners. Anyone know why this is?Why are we penalized for being married when it comes to taxes?
Welcome to the Marriage Penalty for the New Millenium. Congress fixed it for the wealthy quite a while ago. However people of more modest means, especially if they're eligible for the EIC, still take it in the shorts.





I personally know 2 couples would have lost nearly $9,000 in tax breaks by getting married. They've been together for quite a while but probably won't marry until the kids leave the nests.Why are we penalized for being married when it comes to taxes?
that's called the marriage penalty.


it's more acute if both spouse earn about the same than if one spouse each most of the couple income. The reason is that the tax rates are different for small and large incomes.





you can read more at http://en.wikipedia.org/wiki/Marriage_pe鈥?/a>
Why are we penalized for being hard workers when it comes to taxes?


People with no education (nor the will to get some) and no job (and not the slightest intention of getting one) get all the benefits (free health care, welfare check, etc) and pay no taxes.
The government gives singe parents a break because it's hard to raise a family on a single income. It may look good on a tax refund but in reality, one income is really hard to raise kids on. There are advantages to having two incomes to raise a family. And I don't think that a tax refund is a very good reason to consider divorce. LOL
thats not allways true


depends on your income etc
Well, many people do just that (live together without getting married) for that very reason so you would not be alone. I am sure that there are many more filers who claim to be separated as of Dec 31st (you don't have to be divorced), just to avoid the so called ';marriage tax';.





The good news is that the marriage tax is being phased out, beginning in 2005 through 2009! So when you file in 2010 for your 2009 earnings, you will each get the same standard deduction as either of you would get individually. Voila, no more marriage penalty!
because apparently being married means being rich!

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