Good Lifestyle

Marriage is an important step that many hope to take at some point in their lives. And once the stress of the proposal, planning and real marriage is finished, you can assume that you are heading directly in martial happiness. However, this is not always the case, especially once you Combine your finances . In fact, some married couples can be affected by a higher tax burden this year. Read more to hear financial experts on how "marriage sanction" can increase your tax bill.

Read this then: 3 IRS deductions that you cannot take this year, warn the experts .

Market for money does not necessarily consist in finding a rich partner. Instead, many people see marriage as an intelligent financial decision in general, according to a recent survey Out of 1,008 American adults (singles and non -single) who were commissioned by the Forbes advisor and led by the market for market research prolific. Eighty-five percent of the participants in the survey think that people are financially lottis once they get married.

Judi Leahy , a main heritage advisor at Citi Personal Wealth Management, said Forbes That there are several financial advantages that come with a couple. They can share the cost of insurance, divide invoices and can also receive greater tax relief, as joint declarants are eligible for more tax credits than unique declarants. But it turns out that getting married can also have a negative effect on your taxes.

Do not automatically presume that getting married will be an advantage to come. After all, some married couples can face a marriage sanction when they have filed their declarations, according to Olivier Wagner , founder of tax company 1040 abroad. "This is a phenomenon in which married couples pay more taxes than they would do if they were single and rank separately," he said Better life .

The sanction of marriage occurs when the income of two spouses is imposed at a higher rate than they would have been if the two had both submitted unique taxpayers, according to Wagner. And like Wayne Bechtol , a main tax accountant of Austin, Texas, also explains, this can affect people at the same time higher and low -income income. "Usually, all deductions from tax branches are double the amount of married couples when they table their taxes jointly rather than individual," he said. "However, when the thresholds, credits and deductions from the tax tranche are not double, they have to pay for marriage tax."

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Not all married couples will be faced with the wedding penalty. Some of the factors that may affect if you will have to pay it include your combined income and the number of children you have, according to Bill Ryze , a certified charter Financial Advisor and advisor to the board of directors at Fiona Finance. But when it comes to how much you have to pay for the penalty, the main factor comes back to your income. The penalty can reach 12% or as low as 4%, according to the couple's income, says Ryze. AE0FCC31AE342FD3A1346EBB1F342FCB

"The penalty has been introduced because the tax slices do not double income rates when married couples jointly deposit, especially for couples winning the same income," he explains. "When spouses have almost the same income level, they pay the wedding penalty, while a couple with a single working spouse does not hear the penalty. The number of children also affects the penalty because they play a big Role in determining the status of deposit of the couple, level of deduction and access to credit. "

Despite the ability to affect both, the sanction of marriage is currently more worrying for state taxes than for federal taxes, according to Ryze. "Only couples with very high-income levels are likely to be subject to federal sanctions on marriage," he explains. For 2022, income declarations, the highest federal tax rate of 37 percent starts for unique taxpayers whose taxable income is more than $ 578,125. For married couples jointly, this rate debated at $ 693,750, which is lower than that of non -married declarations.

"In simple terms, many high income couples fall into the tax bracket of 37% if they get married," explains Bechtol. "But if they remain single, it falls into the tax tranche of 35%."

Some states also institute the marriage penalty at the level of the state. According to Bechtol, this currently affects 15 states:
California, Georgia, Maryland, Minnesota, New Mexico, New Jersey, New York, North Dakota, Ohio, Oklahoma, Rhode Island, South California, Vermont, Virginie and Wisconsin. But seven states also allow married couples to "produce individual declarations and avoid paying the marriage penalty on marriage," he adds. This includes Arkansas, Delaware, Iowa, Mississippi, Missouri, Montana and Virginia-Western.

Best Life offers the most up -to -date financial information for high -level experts and latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.