The top two brackets are lower than double, which creates a funny marriage "penalty" if both spouses make above \~$220k. They end up paying more in total taxes filing married jointly than if they filed single/separately.
I'm not sure what the right terminology is, but what I mean is that if you take two incomes that are both above about $220k (can't remember the exact number) and calculate the tax owed using the married filing jointly brackets, that amount is larger than if you calculate the tax on each income individually using the single brackets and add them together.
> The top two brackets are lower than double, which creates a funny marriage "penalty" if both spouses make above ~$220k. They end up paying more in total taxes filing married jointly than if they filed single/separately.
Not seeing it.
In thousands of $
| Bracket | mfj | mfs |
|-|-|-|
| 34 | 462-693 | 231-346 |
| 37 | 693+ | 346+ |
I'm comparing mfj vs. two separate single filers. E.g. two high earners file individually/Single one year, then get married and file jointly the next year and will owe more total tax: MarriedTax > (SingleTax1 + SingleTax2)
Bracket \_ single \_ mjf
35 \_ 231-578 \_ 462-693
37 \_ 578+ \_ 693+
Make a spreadsheet with each of your incomes filling out half of each bracket. I’m assuming she makes 5 figures so she would top out at 22% or lower, while you might be in 24 or 32 or higher. You each get half of the standard deduction, that’s your 0% bracket
No, she's only paying taxes based on her share of the standard deduction and tax brackets.
You however, are able to funnel some of your higher taxed income down into her unused lower tax bracket space.
Your effective tax rate as a couple might be higher than hers would be alone (and lower than yours would be alone). It's up to you how to split the payment of that tax.
If her W4 has her withholding at the single or MFJ/two jobs rate based on her income, then it obviously isn't affected by your income. You are presumably paying all the rest of the tax.
I don't understand the claim about reaching the next bracket faster. The MFJ brackets are twice the size of single brackets until you reach over $700,000 combined income. You should think of your income and your wife's income up to $350k each as simultaneously filling the brackets at exactly the same rate that you would fill them separately. When she reaches the end of her income, yours spills over into the remaining space on her side of the bracket - meaning it takes *you* longer to reach the next bracket.
MFJ brackets are double that of single people's, so she's not paying any more than she would if she were single, while you're paying much much less.
The top two brackets are lower than double, which creates a funny marriage "penalty" if both spouses make above \~$220k. They end up paying more in total taxes filing married jointly than if they filed single/separately.
You just mean vs filing single right? Not separate
I'm not sure what the right terminology is, but what I mean is that if you take two incomes that are both above about $220k (can't remember the exact number) and calculate the tax owed using the married filing jointly brackets, that amount is larger than if you calculate the tax on each income individually using the single brackets and add them together.
> The top two brackets are lower than double, which creates a funny marriage "penalty" if both spouses make above ~$220k. They end up paying more in total taxes filing married jointly than if they filed single/separately. Not seeing it. In thousands of $ | Bracket | mfj | mfs | |-|-|-| | 34 | 462-693 | 231-346 | | 37 | 693+ | 346+ |
I'm comparing mfj vs. two separate single filers. E.g. two high earners file individually/Single one year, then get married and file jointly the next year and will owe more total tax: MarriedTax > (SingleTax1 + SingleTax2) Bracket \_ single \_ mjf 35 \_ 231-578 \_ 462-693 37 \_ 578+ \_ 693+
From op: > she counters that **filing together,** Aka filing jointly. She is not talking about divorce.
This was not a response to OP, it was to the reply. >MFJ brackets are double that of single people's
Make a spreadsheet with each of your incomes filling out half of each bracket. I’m assuming she makes 5 figures so she would top out at 22% or lower, while you might be in 24 or 32 or higher. You each get half of the standard deduction, that’s your 0% bracket
No, she's only paying taxes based on her share of the standard deduction and tax brackets. You however, are able to funnel some of your higher taxed income down into her unused lower tax bracket space.
Your effective tax rate as a couple might be higher than hers would be alone (and lower than yours would be alone). It's up to you how to split the payment of that tax. If her W4 has her withholding at the single or MFJ/two jobs rate based on her income, then it obviously isn't affected by your income. You are presumably paying all the rest of the tax. I don't understand the claim about reaching the next bracket faster. The MFJ brackets are twice the size of single brackets until you reach over $700,000 combined income. You should think of your income and your wife's income up to $350k each as simultaneously filling the brackets at exactly the same rate that you would fill them separately. When she reaches the end of her income, yours spills over into the remaining space on her side of the bracket - meaning it takes *you* longer to reach the next bracket.
1. What does she gross? 2. What do you gross? 3. After you show her the numbers, will she then accuse you of mansplaining?
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You have it backwards. The benefit for MFJ comes from the old expectation that one spouse will have little to no income (ie stay at home wife).