Saturday, January 23, 2010

How are your income taxes affected when you get married?

What is your income tax rate when you are married?How are your income taxes affected when you get married?
There's no magic number.





When married, you typically file married filing jointly.





You get a standard deduction that is 2x the single rate ($11400 for 2009) and 2 exemptions ($3650). After that the tax rate is 10% on the next $16700, then 15%, then 25%, etc.How are your income taxes affected when you get married?
Your income tax rate is determined by the total amount of your taxable income. The rates for married persons vary from 10% (0% if you include persons who do not have enough income to have any tax) to over 25%.
You can file a joint return, which often but not always gives you a lower total income tax between you than if you were still single. Depending on your circumstances though, the tax could be more/refund smaller.
You get the benefit of filing jointly. The tax rates won't edge up as quickly as when you were single. The only possible downside is if you are both high income earners.

No comments:

Post a Comment