It’s time to look at the marriage penalty again for 2012, although I am happy to report it won’t be affecting me any longer. For the rest of you, let’s see how much you’re paying to be married. Last year, I posted about this and it had gotten worse. Taxes are a huge debate right now in political circles. This never seems to get much attention though.
2010 Taxes
Filing Single Status
10% on income between $0 and $8,375
15% on the income between $8,025 and $34,000; plus $837.50
25% on the income between $34,000 and $82,400; plus $4,681.25
28% on the income between $82,400 and $171,850; plus $16,781.25
33% on the income between $171,850 and $373,650; plus $41,827.25
35% on the income over $373,650; plus $108,421.25
Married Filing Jointly or Qualifying Widow(er) Filing Status
10% on the income between $0 and $16,750
15% on the income between $16,750 and $68,000; plus $1,675.00
25% on the income between $68,000 and $137,300; plus $9,362.50
28% on the income between $137,300 and $209,250; plus $26,687.50
33% on the income between $209,250 and $373,650; plus $46,833.50
35% on the income over $373,650; plus $101,085.50
2011 Taxes
Single Filer 2011
10% on the income between $0 and $8,500
15% on the income between $8,500 and $34,500
25% on the income between $34,500 and $83,600
28% on the income between $83,600 and $174,400
33% on the income between $174,400 and $379,150
35% on the income over $379,150; plus $110,016.50
Married Filer
10% on the income between $0 and $17,000
15% on the income between $17,000 and $69,000
25% on the income between $69,000 and $139,350
28% on the income between $139,350 and $212,300
33% on the income between $212,300 and $379,150
35% on the income over $379,150; plus $102,574
So the 25% married tax bracket ends at an equivalent income of $69,675, whereas the single bracket continues on to $83,600, a difference of $27,850. That means you will be entering the 28% tax bracket almost $28k earlier than when you were single. So, if you and your spouse make between and $69k and $83k each, you’re getting the penalty. Last year, the range was $66k to $78k. The gap has gone from $12k to $14k. This is about $2k worse than last year.
If there’s a silver lining at all, it’s that the tax brackets are using higher numbers, but salaries haven’t seemed to go up at all, so it’s possible you could be in a lower tax bracket and pay less taxes.
Comments are closed.