“Marriage penalty” longer exists!

The “marriage penalty” is due to tax rates for married taxpayers paying more than twice what they would have paid if they has not been married and filed separately. 2019 tax brackets eliminated this for tax brackets below 35%.

The effect of this is that depending upon what a married couple’s tax situation is it could be more beneficial to file married filing separate. One example would be if one spouse’s income is much lower than the other’s. Another example would be if one spouse does not want to be involved with potential tax consequences of the other spouse’s actions.

It is not difficult to determine if filing separately is a good decision for a married couple, and we would be happy to assist you with making the choice. Please contact us if you are interested in exploring this more.

This entry was posted in Uncategorized and tagged , . Bookmark the permalink.