Calculate Whether You'll Get a Marriage Penalty or Bonus at Tax Time

Most people assume marriage means you get a big tax break. The idea is: you combine both incomes and pay a single, reduced income tax. This is true in many cases, but not all of them. This calculator tells you whether you can expect to get a bonus or penalty when it comes time to file your taxes as a married couple.

In basic terms, a marriage penalty happens when your combined income pushes you and your spouse into a higher tax bracket. In this case, you end up paying more by filing jointly than you would if you each filed individually.

To help you figure it all out, the New York Times developed a calculator that tells you how much more or less you can expect to pay in taxes by filing jointly vs. individually.

The calculator is based on a chart that shows when a penalty or bonus occurs, depending on income and income split (the percentage of total income you earn vs. your spouse). When you run the numbers, the calculator shows where you sit on this chart.

As you can see in the example above, a penalty usually occurs in low or high-earning households. Couples who earn an income somewhere in between can expect a bonus. And when the split is about 50/50, the difference in filing jointly vs. individually is pretty negligible.

Give it a try for yourself at the link below.

Tax Day: Are You Receiving a Marriage Penalty or Bonus? | The New York Times

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