Few Americans know the full impact that marriage has on their taxes. Like many, most assume the taxes remain the same. This is rarely the case however. In fact, you could incur a 12% penalty once you are married and have children.

1. MARRIAGE TAX
SINGLE INCOME COUPLE INCOME
$151,900
up to
to be in
25%tax margin
$91,150
up to
to be in
25%tax margin
“One unintended feature of the United States’ income tax system is that the combined tax liability of a married couple may be higher or
lower than their combined tax burden if they had remained single. This is called the marriage penalty or marriage bonus.”
-taxfoundation.org
COUPLES INCOME
BONUSPENALTY
canbe
COUPLES INCOME
as high as
WILL WE GET A MARRIAGE TAX BONUS OR PENALTY?
MARRIAGE TAX EFFECT
LITTLE TO NO IMPACT
ON COUPLES DECISION
TO MARRY
DOES IMPACT HOW MUCH
EACH SPOUSE WORKS
MARRAIGE PENALTY
occurs when a couple has near
equal incomes (regardless of tax bracket)
$150,000 $150,000
+ =
MARRAIGE BONUS
occurs when a couple has
desparate incomes
$75,000 $25,000
+ =
MARRAIGE PENALTY WITH CHILD
REFERENCES
adding a child with equal incomes
can increase the penalty depending on tax bracket
$150,000 $150,000
+ + =
1. www.taxpolicycenter.org 2. www.forbes.com
3. www.howmoneywalks.com 4. www.ctj.org/html/marpen.htm
5. www.creditsesame.com 6. www.investinganswers.com
7. www.taxact.com 8. www.marriagetaxcalculator.com
9. www.washingtonexaminer.com 10. www.taxpoint.com
11.www.thefiscaltimes.com 12. www.dontmesswithtaxes.com
13. www.taxfoundation.org
www.dgkgrouppc.com