Married couple with zero dependent and single with zero dependent, why the married one paying less tax (less percentage of the paycheck)?
What is the different? on which part? (not including the IRA/401k)
2007-06-26 09:16:52 · 4 answers · asked by booboobooboobooobooo 3 in Business & Finance ➔ Taxes ➔ United States
For tax purposes, married people can essentially pool their earnings and deductions by filing a joint return. If one is in a higher bracket, that "averaging" can sometimes take them down to a lower bracket. The withholding tables allow for this.
If a married couple each have similar incomes, when they file their return they'd end up paying the same as two single people with the same incomes.
2007-06-26 09:42:49 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
The payroll tables are built assuming that your income is your only income. When you go from "Single" to "Married", the tables assume that you are now supporting two people instead of just one on the same income.
Many a married couple have learned the hard way and ended up owing after both changed their withholding from Single to Married.
2007-06-26 09:29:53 · answer #2 · answered by Wayne Z 7 · 1⤊ 0⤋
The tax tables give a break to married couples. The reason this is the case is that congress passed a law making it that way. "Fair and Logical" are two words not associated with tax law.
2007-06-26 09:21:42 · answer #3 · answered by ? 6 · 0⤊ 0⤋
Because marriage is such a hardship already, so why not give them a break.
2007-06-26 09:24:39 · answer #4 · answered by Jon Skywalker 4 · 1⤊ 0⤋