A coworker claims that his wife stopped working because her relatively low earnings had no net effect on their household income. In other words, all of the money she brought in was taken in taxes and they take home exactly as much money now as when she worked. Something about going into a higher tax bracket. My understanding is that income tax brackets don’t work that way. Both live in the US, in a no income tax state, and are way too young for social security to come into the equation. He is well paid, probably $150-200k, and based on her degree, I doubt she made more than $30k. To be clear, he claims he did not get a raise or anything like that.
I think it’s BS; she doesnt work for other reasons entirely and he gets to complain about the government. He claims that they “did the math”, which in my experience usually means “math scares me, so I did whatever I felt like”.
Good people, is there any situation where a married couple can have an equal or higher net (after tax) household income by having one of them stop working? The old spider sense says no, but taxes are like voodoo sometimes.