The marriage penalty for your federal taxes has virtually been eliminated for all but the highest of income earners.
This means if you have a change coming, like an upcoming marriage, divorce, or death checking with your CPA could make a difference in how much of your hard earned money you get to keep.
For example, starting in 2018 a couple can make up to $315,000 and still be in just the 24% tax bracket.
Whereas a single person can only have an income of half that, or $157,500 before their taxes go up to 32%.
I think the planning opportunities for this could apply to many situations, but primarily I’m thinking of retired people. Death and divorce is, unfortunately, the cause of frequent planning needs. But if there is a change of filing status, accelerating income could save money.
Source TaxFoundation.org
Thanks for taking a look!
Tom Gartner, MSAPM, CFP®
This article represents opinions of the authors and not those of their firm and are subject to change from time to time, and do not constitute a recommendation to purchase and sale any security nor to engage in any particular investment or legal strategy. The information contained here has been obtained from sources believed to be reliable but cannot be guaranteed for accuracy.