For an average of all American workers, how much money per person or couple do we save by filing our taxes as “married” instead of “single”?
Average American, perhaps little to nothing. Is the ‘‘average’’ a couple, both working? When does the alternative minimum kick in?
The married table is as if each person earns half. If husband makes $100k and the wife stays at home, they are taxed as if each made $50k. In this case the savings would be about $4000 (total). However, if they each actually earned $50k, there would me no savings. There is only a savings if one partner makes significantly more than the other.
Marriage only ties two people’s deductions into one tax form. It doesn’t change the amount of the standard deduction. The only thing filing jointly does is to say “What’s yours is mine and mine is yours.” There is a difference in rates, however. If you’re married, each person can earn $71,350 and be in the 25% bracket. Anything more is taxed at 28% or higher. But if you’re single, you don’t pay 28% until $85,650…the so-called marriage penalty.
Yeah, and you can end up paying more taxes if you have similar incomes and are on the cusp of different tax brackets. Our situation was like that–we had a little bit (I don’t remember how much) of a “marriage penalty.”