Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Wait, I thought US essentially doubles the tax slabs if you are married and file as a couple. So it works out well for couples with income skew


No, it is not double. The 2017 Tax Cuts and Jobs Act reduced the marriage penalty quite a bit due to broadening the tax brackets. It is still there, especially for very high earners, but not noticeable for the vast majority.

https://www.bakerinstitute.org/sites/default/files/2019-03/i...


Surely $600K as a couple income is even on the top endz even in tech. So, for most normal couples like where one earns $300K and the other $100K, filing as a married couple is better, no?

Or am I misunderstanding something


I think I misunderstood you, and did not realize tax slab meant tax bracket, as assumed you meant the US doubles the tax liability if you are filling married joint.


[assuming United States for everything here, in case it wasn't obvious]

In addition to the brackets, there's tons of other deductions, exemptions, etc that are higher or double for married-filing-jointly tax returns.

Just one example is the capital gains on selling your home: if you're filing singly you get an exemption on the first $250k of capital gains, but if you're married and filing jointly that exemption is on the first $500k of gains.


home mortgage interest is another big one. Interest 375 is deductive if single, 750k if married. Property taxes deductions are similar.


A combined $400k is not remotely normal income.


In the US, you have a choice between filing separately, or jointly.

So, depending on your particular situation, you pick the one where you pay less taxes.

Marriage cannot ever increase your tax liability.


Yep.

The tax brackets mostly eliminate the "marriage penalty", though there are some true edge cases that might make filing separately better. Generally speaking, most married couples do the same or better by filing together.


Yeah, that's what my assumption was. US has the best tax situation for married people that I know of.


Really? Please go figure out how what you said is true for a couple both making 500k/year

Can’t. You’re just wrong.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: