My friend was planning a marriage for next year. They up and went to city hall today and got married. The reason is so they can save on taxes filing jointly. I know it is beneficial, but how much so?
2007-12-31 08:42:42 · 2 answers · asked by mpalmernyc 4 in Business & Finance ➔ Taxes ➔ United States
It's only better if one of them is not working and would not benefit from their own personal deductions. This would allow the working spouse to double their standard deductions. if they both work and earn about the same, there probably isn't any simple reason for it being better, and it can be worse if kids are involved. Personal exemptions are $3400 this year and the standard deduction is $10700 for married (half this for single). In the 25% bracket, the additional $8750 in write off for the working spouse would be about $1700.
2007-12-31 09:02:57 · answer #1 · answered by Patrick S 3 · 0⤊ 0⤋
That depends - there's no one answer. If one of them has a much higher income than the other, they'll be likely to save on taxes. If they both have fairly equal high incomes, then it might cost them more in taxes to be married.
2007-12-31 09:17:27 · answer #2 · answered by Judy 7 · 1⤊ 0⤋