2006-07-20 13:44:41 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
It depends upon the income of the two people. It can have a small benefit and it can have a small penalty. It all depends upon the income amounts of each person separately and the sources of that income. There isn't a clear answer to your question.
The biggest beneficiaries are a young couple with one working spouse. In that case, the non-working spouse's tax deductions on the standard deduction would go unused. The biggest penalties are for moderate to very high dual income couples who may not have qualified for the AMT or are pushed into higher brackets by the smaller of the two salaries.
2006-07-20 13:53:36 · answer #1 · answered by OPM 7 · 0⤊ 0⤋
Not really. The standard deduction is double the amount of a single taxpayer. The incomes of two single people will be taxed at a lower rate than a married couple. This situation is what people call the "marriage penalty"
2006-07-20 21:44:08 · answer #2 · answered by Adios 5 · 0⤊ 0⤋
If there was a tax benefit, I never felt it. We both worked and had no children and we paid through the nose in taxes. During the year we each claimed our deductions as single 0 dependents (which is more money taken out than married with 0 dependents) and we had extra taken out on top of it. On tax day...we sometimes still owed more.
2006-07-20 20:50:01 · answer #3 · answered by J Somethingorother 6 · 0⤊ 0⤋
It is better to file together than seperate if you are married. also, you get a higher tax credit when you are together.
2006-07-20 20:48:08 · answer #4 · answered by Rock_N_Roll_Chicky 5 · 0⤊ 0⤋
didn't help me a bit after my kids were to old to claim.
2006-07-20 20:49:01 · answer #5 · answered by jgmafb 5 · 0⤊ 0⤋