- Days left

Tax Benefits and Penalties of Marriage

Marriage taxes Getty Images DOMA
Getty Images

The Supreme Court has struck down part of a law that denied federal benefits to same-sex couples who were married in states that recognize their unions. The tax benefits of being married, however, are a mixed bag.

Three scenarios:

A couple with no children. One spouse makes $70,000 and the other makes $30,000, for a combined income of $100,000. They each take the standard deduction.
Combined federal income tax bill if they file as single adults: $13,483.
Tax bill if they were married filing jointly: $11,858.
Tax cut for being married: $1,625.

A couple with no children. One spouse makes $225,000 and the other makes $75,000, for a combined income of $300,000. They each take the standard deduction.
Combined tax bill if they file as single adults: $71,861.
Tax bill if they were married filing jointly: $77,575.
Tax increase for being married: $5,714.

A couple with no children. One spouse makes $35,000 and the other makes $15,000, for a combined income of $50,000. The lower-paid spouse gets health insurance benefits provided by the higher-paid spouse's employer.
Combined federal income tax bill if they file as single adults: $4,323.
Tax bill if they were married filing jointly: $3,608.
Tax cut for being married: $715.
Note: Employer-provided health benefits are generally tax-free for workers, spouses and dependents. However, if a worker's unmarried partner is covered, those benefits are taxed.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

TurboTax Articles

Do The Math: Understanding Your Tax Refund

For most people, tax is collected by an employer at a rate that estimates your tax for the year. Your actual earnings and the deductions that you?re allowed to claim might cause you to pay too much tax, which leads the Internal Revenue Service to issue you a refund. "The idea behind a tax refund is quite simple," says James Windsor, a certified public accountant from Ann Arbor, Michigan. "When you pay more tax than you owe, the Internal Revenue Service returns the overpayment as your refund."

5 Tax Tips for Single Moms

If you?re a single mom filing your taxes, make use of tax credits and deductions that can help reduce your taxable income and reduce the amount of tax you pay. A number of strategies, credits and deductions can be used to reduce taxable income, and in some cases, allow tax refunds even if you didn?t pay in any taxes. When you use TurboTax, we?ll ask simple questions and handle these calculations for you.

5 Tax Tips for Single Parents

Filing taxes as a single parent requires coordination between you and your ex-spouse or partner. Usually the custodial parent claims the child as a dependent, but there are exceptions. A single parent is allowed to claim applicable deductions and exemptions for each qualifying child. Even though you claim your child as a dependent, she may still have to file her own tax return if she has income, such as from an after-school job.

Affordable Care Act Decoded

The health care reform law known as the Affordable Care Act may directly affect your tax liability. Many taxpayers are familiar with the requirement that most Americans either carry health insurance or pay a tax penalty. But that's just one provision, and knowing what else is in the law can help you avoid surprises come tax time.

Add a Comment

*0 / 3000 Character Maximum

Comments

Filter by:
setanta54s_back

9th CIRCUS court.sUpremes etc overturn the will of the people
so
what IS
THE POINT
of voting ?

people better WAKE UP.

July 01 2013 at 1:35 AM Report abuse +1 rate up rate down Reply