Filing separately only makes the marriage penalty worse

May 04, 2017 02:26AM
The problem is not whether you file jointly or file married separately. Filing as married as compared to single is what causes the penalty, and if you're married you can't elect to file as a single.

You don't avoid the marriage penalty by not filing jointly. The main reason to file separately when married is a) you're separated but still legally married, and b) protection in the case of a return, as you're only liable for the return you submit, so in the joint context you're liable for your spouse since you both sign the return.

Married filing separately takes the marital brackets, and divides them by 2.
You end up paying close to the same amount of tax when you file separately.

First number is jointly, other is married separately
10% Up to $18,650
Up to $9,325
15% $18,651 to $75,900
$9,326 to $37,950
25% $75,901 to $153,100
$37,951 to $76,550
28% $153,101 to $233,350
$76,551 to $116,675
33% $233,351 to $416,700
$116,676 to $208,350
35% $416,701 to $470,700
$208,351 to $235,350
39.6% $470,701 or more
$235,351 or more

So if Spouse A earns $200K and Spouse B earns 50K
Jointly you would pay 57911.99 on that 250K of income
Separately, Spouse A pays 53705.49 and Spouse B pays 8270.85
So by filing jointly you save $4064.35

If both spouses make $200K
You pay 107217 jointly, and 107411 if done separately.

Income levels impact this, but usually there is a small advantage to filing jointly, with a larger advantage conferred when there is a big disparity between the incomes.

However, if bother were single, here are the rates.
Example 1) Spouse A pays 49528.24, Spouse B pays 8270.85 (the marriage penalty requires a spouse to earn 75951 to kick in)
Net they pay 57799.09.

Example 2)
Both spouses pay 49528.24
Net they pay 99056.48

So example 1) you pay
S: 57799.09, M/J: 57911.99, M/S: 61976.34

Example 2)
S: 99056.48, M/J: 107217, M/S: 107411

So, it's always better to file as singles, and if married, always better to file jointly, with the greater the disparity in income, the greater the benefit of joint filing.



Edited 1 time(s). Last edit at 05/04/2017 02:38AM by zannon.
Subject Author Posted

Meet a liberal day. (the issues only).

physics May 02, 2017 09:39AM

Re: Meet a liberal day. (the issues only).

Rade May 20, 2017 12:06PM

Re: Meet a liberal day. (the issues only).

Quixotic May 22, 2017 04:55PM

Re: Meet a liberal day. (the issues only).

Rade May 22, 2017 08:41PM

I am curious about your underlying assumptions.

Quixotic May 23, 2017 03:44PM

Re: I am curious about your underlying assumptions.

Rade May 24, 2017 04:59AM

To be fair

Kstatida May 21, 2017 02:35AM

Read _Dark Money_

Quixotic May 14, 2017 05:14PM

You're right about abortion. We also need infanticide clinics.

Rhyaldrin May 04, 2017 03:55PM

Hah (n/t)

TJHuron May 06, 2017 03:51AM

That's a good way, I also propose an enhancement

Kstatida May 04, 2017 10:00PM

Re: Meet a liberal day. (the issues only).

Balrahd May 03, 2017 10:04AM

my manifesto. txt

Isildur(VIP) May 10, 2017 07:42AM

As a citizen of country with VAT, I'm obliged to say

Kstatida May 10, 2017 08:21AM

Re: As a citizen of country with VAT, I'm obliged to say

Isildur(VIP) May 10, 2017 09:40AM

Re: As a citizen of country with VAT, I'm obliged to say

Kstatida May 10, 2017 10:12PM

some observations about this: txt

Isildur(VIP) May 10, 2017 07:52AM

we definitely need more death...ahem...estate taxes.

The Forsaken(VIP) May 03, 2017 12:52PM

Re: Meet a liberal day. (the issues only).

Jib May 03, 2017 10:45AM

Re: Meet a liberal day. (the issues only).

Balrahd May 03, 2017 11:13AM

Gotcha.

Jib May 03, 2017 12:12PM

Filing separately only makes the marriage penalty worse

zannon May 04, 2017 02:26AM

There can be a marriage penalty

zannon May 03, 2017 11:04AM

Taxes are a tough thing to fix

zannon May 03, 2017 10:13AM

Re: Child credit is capped but there is a floor of $600

Balrahd May 03, 2017 11:05AM

Re: Trump tax plan

Jib May 03, 2017 12:05PM

I hate labels.

Jib May 02, 2017 10:24PM

Publically funded religious schools are unconstitutional

physics May 03, 2017 03:02AM

debatable. txt

Isildur(VIP) May 04, 2017 12:57PM

Call it a private school tax credit and let me decide what to do with it.

Jib May 03, 2017 07:56AM

It's not the public-ness of the school that is the problem

starbright May 03, 2017 11:04AM

Re: It's not the public-ness of the school that is the problem

Balrahd May 04, 2017 12:39AM

It's not class sizes, it's ability diversity and capacity for handling student questions

starbright May 04, 2017 02:35AM

Re: It's not class sizes, it's ability diversity and capacity for handling student questions

Balrahd May 04, 2017 10:24AM

I think, encourage what they are interested in.

Jib May 04, 2017 12:18PM

Yeah, actually you're right that most pursuits have an unequal talent distribution

starbright May 04, 2017 11:18AM

I don't really know about U.S., do you have academic contests or something?

Kstatida May 04, 2017 11:14AM

No. Everyone needs a participation prize. We don't want kids to feel bad about losing.

Jib May 04, 2017 12:21PM

^ recommended by Lenin to read and think on

Kstatida May 04, 2017 12:56AM

Re: recommended by Lenin

Murphy May 04, 2017 06:19AM

#4 is most important to me

PaulO May 03, 2017 06:58PM

I agree.

Jib May 03, 2017 12:33PM

Interesting correlations with schooling outcomes

starbright May 03, 2017 11:45PM

we need mo' money for dem programs. (n/t)

Rhyaldrin May 04, 2017 12:00AM

Re: we need mo' money for dem programs.

Kstatida May 04, 2017 12:51AM

gibs me dat. (n/t)

Rhyaldrin May 04, 2017 01:07AM

It's equalization that makes public schools bad

Kstatida May 03, 2017 08:05AM

Yep, exactly.

Jib May 03, 2017 08:20AM

That's interesting

Kstatida May 03, 2017 08:22AM

The argument is, that educating them is better than having masses of uneducated kids growing up into masses of uneducated, poor adults.

Jib May 03, 2017 08:35AM

So they're not exactly illegal

Kstatida May 03, 2017 08:37AM

Something like that.

Jib May 03, 2017 08:44AM

Hi. Meet a right-leaning anarchist total-isolationist traditionalist.

PaulO May 02, 2017 12:28PM

not to trumpet late stage capitalism, but, it applies here

The Forsaken(VIP) May 03, 2017 05:40AM

The problem with cronyism

PaulO May 03, 2017 06:45PM

The liberal economic dream.

physics May 02, 2017 01:26PM

Women's liberation is the reason for wage stagnation, not greedy rich people

Rade May 22, 2017 06:23PM

Because we are a country of Wealth worshippers

ORB May 03, 2017 04:53AM

This wall of text is offensive.

Rhyaldrin May 03, 2017 07:29PM

Buy local, even if it is more expensive. (n/t)

PaulO May 03, 2017 06:47PM

That's the rule I live by. My wife hates me for this

Kstatida May 03, 2017 11:08PM

Yeah agree that there is an unwarranted worship of the wealthy

starbright May 03, 2017 10:44AM

Funnily enough

Kstatida May 03, 2017 05:04AM

liberal economic lies vs. conservative economic lies

PaulO May 02, 2017 04:15PM

Re: The liberal economic dream.

Jib May 02, 2017 01:57PM

As another liberal agree with most of your points

starbright May 02, 2017 12:09PM



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