Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
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Fax: 856.667.3652
For the week of
November 27, 2000
The marriage penalty could cost you $16,000
Your marital status at December 31st will determine how you
can file your income tax return. If you are married, you must either file as “Married Filing Jointly” with your
spouse or as “Married Individuals Filing Separately.”
The level of earnings for each spouse will determine the level of the marriage penalty.
Here are three examples of the penalty when each of the spouses makes about the same amount of taxable income.
If each spouse makes in the $60,000 range, the combined tax bill will be about $2,000 higher than if they were
single. At $130,000 of taxable income for each spouse, the additional tax for being married is about $7,000, and
if each had taxable income of around $280,000, the additional tax they'll pay for being married is over $16,000.
If you are planning a change in your marital status, either marriage or divorce, consider the tax impact that a
few days at year-end can make.
Give us a call. We will gladly assist you with
your tax planning. We are here to see that you pay no more tax than the law requires.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
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