Home > Tag Archives: marriage tax penalty

Tag Archives: marriage tax penalty

Can Couples Save Money By Not Getting Married?

couples not getting married to save money

June has long been the most popular month for weddings. As couples are planning to walk down the aisle, hopefully, they are also planning their finances as a married couple. Not being on the same page financially is a reason many marriages don’t work out, but what if the happy couple does talk about money and determine that the numbers just don’t make sense. It is interesting to look at whether some couples can save money by not getting married. There was a good post at Retire By 40 recently about how it might be easier for single people to save money, but what about couples who don’t get married at all? We will assume that our theoretical couple cohabitates and is committed as if they were married.  Are there money benefits for avoiding a wedding? Marriage Tax Penalty For many couples, especially those with similar incomes, marriage increases income taxes. When married couples who file taxes jointly pay more in tax than they would have had to pay individually, this is know as the marriage tax penalty. For example, two people who each make $80,000 a year and file taxes individually would be in the 25 percent tax bracket, but ...

Read More »