Is it true that ultimately a couple has to pay more tax if both of them earns in comparison to one of them earning?
Date: Sun, 12/11/2016 - 22:20
Is it true that ultimately a couple has to pay more tax if both of them earn in comparison to one of them earning? My friend Emily's husband used to work and they filed tax jointly but now Emily has got a job but the salary is not much. Her friend has suggested to check out whether or not they'll have to pay much more since they file jointly. Since she won't be earning much, so if they calculate, they'll have to pay more tax than what she'll earn in a year.
For married couple filing
For married couple filing separately, taxpayers get a standard tax deduction of $6,300 as compared to $12,600 for those who file jointly. However, if both of you have high AGI (Adjusted Gross Income) and quite high out-of-pocket medical expenses, then filing separately may make more sense; the reason being that the IRS allows deduction of the costs that exceed 10% of your AGI.
