jcapulet

I feel kind of dumb asking this but...Is there a way to find out what one's "marriage penalty" will be when filing their taxes? I am really paranoid that it will be some outrageous amount! I know taxes won't be until several months from now, but I was just wondering since I have never dealt with the marriage penalty. We plan to file a joint return, but I have a feeling based on the EAD wait that he may not be working during this tax year-so it would be based on my salary alone.

Thanks if anyone has any info

Juliet

DCMark

Then you have the opposite! A nice tax windfall.

If you file jointly for 2003, yet he does NOT earn any money in that year, your taxes will actually go down, as you are two-person household with only one income.

The penalty generally occurs when both people are working, and their (combined) taxes are higher than if they were single.

This is assuming you are married in 2003. It does not matter if he has an EAD to the IRS, he is still part of the household.

Aliluv

We got a big fat check from the IRS.

The marriage penalty only hits those in a higher income bracket.

It would greatly depend on your income and his income.

Here is a helpful link, there is a link in the article that is a calculator!

http://www.heritage.org/Press/NewsReleases/NR090100.cfm

jcapulet

DCMark and Aliluv, thanks so much for the info! I feel much better knowing more about it.

Btw, that calculator is pretty cool. I've been searching for something like that on the web but I could never find it.

Juliet

imkimmy

Juliet-

That is precisely what happened to us, Stantton's first year down here. He didn't get his EAD until Jan.4, so for the prior year, I got to count him as a dependent since I was the only one earning an income.

BTW, I thought the tax legislation this year eliminated a great part of the marriage penalty and back dated it to Jan. 1 of this year. That is good news for all of us!

Kimberly

Folinskyinla

Hi:

The "marriage penalty" comes into play when BOTH spouses are working and making good bucks.

Martin

"imkimmy" <[email protected]> wrote in message
news:[email protected]...
    > Originally posted by jcapulet
    > > I feel kind of dumb asking this but...Is there a way to find out what
    > > one's "marriage penalty" will be when filing their taxes? I am really
    > > paranoid that it will be some outrageous amount! I know taxes won't be
    > > until several months from now, but I was just wondering since I have
    > > never dealt with the marriage penalty. We plan to file a joint return,
    > > but I have a feeling based on the EAD wait that he may not be working
    > > during this tax year-so it would be based on my salary alone.
    > >
    > > Thanks if anyone has any info
    > >
    > > Juliet
    > Juliet-
    > That is precisely what happened to us, Stantton's first year down here.
    > He didn't get his EAD until Jan.4, so for the prior year, I got to count
    > him as a dependent since I was the only one earning an income.
    > BTW, I thought the tax legislation this year eliminated a great part of
    > the marriage penalty and back dated it to Jan. 1 of this year. That is
    > good news for all of us!
    > Kimberly

*L* It was not eliminated. For people in the 15% tax bracket and below it
was suspended, and the 15% tax bracked was expanded to a higher income
level. All messures taken are only good I think until 2012.....and who know
what changes will be made then, or even before. As for the penalty itself it
just depends what the total household income is and when his EAD get's
approved. I'd say if you want specific info to you call a local H&R Block
office.....they are good at helping and give you tips to make sure you will
not owe any taxes.

Martin
    > --
    > Posted via http://britishexpats.com

jcapulet

Hi Kimberly,

I remember reading on the news something about a reduction/adjustment in the marriage penalty for many couples, that is definitely good news for everyone!

Juliet

Aliluv

Hi JC

I found this:

Marriage penalty relief: The new law changes 2003 and 2004's standard deduction for married couples filing jointly and qualified widowers to be double that of single tax filers. This means that the standard deduction for these filers increases from $7950 to $9500 for 2003. After 2004, the standard deduction will revert back law passed in 2000

this link is more updated with the new laws:

http://www.dinkytown.net/java/TaxMargin.html

There is a calculator also!

jcapulet

Thanks Aliluv. The information about the new law is interesting. I tried out the calculator too...I don' t know why I like those tax calculators so much LOL...
Juliet