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Rising Star
So romantic 🥰
Call me old fashioned, but I've never seen marriage as anything other than a financial transaction. My partner and I committed to building our life together when we moved in with each other 😊
I was surprised the partner at your firm makes only 80k, then I realised how sad my life is 😂
Partner and I were “penalized” when we filed as married for the first time. We are both around 140-170 though. And mostly because he took itemized deductions before marriage and I did standard because that’s what maximized our refund. When you get married, you’re both forced to take standard or both itemized so yeah that’s how we got penalized. We joke about getting an annulment for tax purposes.
Chief
Stimulus check $ if you are both maxing out your 401k.
If you’re asking about tax consequences to getting married vs getting married for love, I’d recommend not getting married.
Nope, about 10
Rising Star
Here before anyone else. Google is your friend
Valid. Google had much better resources on this than I expected to find, hence the Q here. Thanks!
You always have the option to file separately, so getting married is generally always advantageous from a tax perspective
Rising Star
Just check your tax bracket for both single and married. 90% of the time you’ll pay less taxes as a married couple. This changes when both of your incomes start getting to the same amount since 1 of the incomes will be taxed at a higher rate.
If only one income, there is a marriage bonus. If two incomes, there used to be a marriage penalty, but not as much now since the Trump tax cuts until you get to the highest tax brackets.
The biggest penalty is if you maximize your SALT deduction as that is not doubled for married couples.
Also, the Obamacare tax kicks it at $200k for single and $250k for couples.
Married, filing separately rarely helps.
It sucks to pay a penalty and glad it is reduced, but you get other benefits such as health insurance that it generally washes out in the end.
True benefits depend on States level as well.
Don’t forget Federal isn’t the full story.