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Updated about 8 years ago,
- Rental Property Investor
- Baltimore County Maryland and Tampa Florida
- 2,484
- Votes |
- 2,733
- Posts
Marriage penalty tax
Hello everyone! It's been a while since I've really posted, but I am still here! Here's an interesting subject that I'd like to discuss. Please keep in mind, let's keep the logical side of things and not the emotional side.
My fiance and I just celebrated 10 years together. We own our personal home together as well as joint ownership of our LLC that owns rental properties. Our Enrolled Agent (tax guy) gave us an idea of how our taxes would change once legally married (filing jointly because filing separate is worse). Well, as of our picture last year, getting married will increase our taxes by $5,000! Since then I have started a new W-2 job with higher pay so I know that'll cause our taxes to go up even more again if married.
We spoke to an attorney to discuss this concern and if we would not be protected in some way by not getting married. She shared with us--simply put--that any assets we want to ensure automatically go to the other if one passes away, we simply have titled in both names. Have things like POD (payable on death) for any separate bank accounts and of course, have our Wills, Health Directives, ect written out.
We fail to see how legal marriage would benefit us. It gives no protections that we can set up ourselves. It costs us more money simply for a title. Even SS isn't promised (which we don't depend on anyway). My grandmother recently passed away after 63 years of marriage to my grandfather. We found out that he does not continue getting her SS check because her check was of a lesser amount than his SS check!
Simply put, I'm curious if others feel this same frustration with two high-income earners in a household being married and paying more vs not married and saving that money. Of course, if our financials changed to a point that marriage benefited us, we'd take advantage of it.