Comment Policy

Disputes of fact and of opinion are why we are here. We may disagree with you, just as we hope you share your disagreements with us. Being friendly will usually invite friendly replies. We can and will delete otherwise great posts for unseemly profanity.

Comments anywhere on the site -- no matter how old the post -- will show up on the front page as a recent comment and in the comment RSS feeds.

Tuesday, December 27, 2011

Taxes and Marriage (Why the poor are penalized)

Despite what you may have heard, when it comes to taxes and benefits, it generally pays to be married. But that's not true for all couples from MSNBC November 2010
51% of married couples paid less tax jointly than if they had not been married, according to a 1996 Congressional Budget Office analysis. The average amount these couples saved: $1,300.
42% of married taxpayers paid more by filing jointly than they would have if they'd remained single, the office said. The average penalty: $1,380.

The people who faced the most egregious penalties, as a portion of their income, were the working poor, according to tax expert Edward McCaffery, a law professor at the University of Southern California and the author of "Taxing Women." A husband and wife who each earned $10,000 could end up with a marriage penalty of more than $4,000.

Those low-income couples still face the potential for a tax penalty, said Mark Luscombe, a principal analyst for tax research firm CCH. That's because the earned-income credit, a tax break designed to keep the working poor out of poverty, can be less for a two-earner household than for singles.

0 comments,:

Post a Comment