[quote=kev374]Using the calculators at paycheckcity.com, $250k for a couple would translate into a net income of $164,800. $125,000 as a single translates into $79,700 net.
The married couples makes $85,000 net MORE than the single guy. The fixed costs like living and food are about the same or neglibily more. If the married couple has car loans then that may be an additional expense, and perhaps gas.
So, the couple’s fixed costs may increase 5 – 10% over a single but their available discretionary income skyrockets making them infact MUCH more wealthy.
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Based on 2008 tax info (go here for the calculator), a single person making $125k pays $28,978 in taxes. That equates to $96,022 take home. For a married couple making $250k, they need to pay $61,229 in tax. Which equates to $188,771 after taxes = $94,385.50 per spouse.
I also ran the numbers using PaycheckCity.com and the single filer making $125k bring home $76901.76 (with 0 exemption). While the married couple with 2 exemption bring home $151,669.96 = $75834.98/spouse. I’m not sure what you did to get your # but I’m not getting the same result.
How do you get fixed cost to be the same or negligibly more? Food for 2 people should cost 2X more than for 1 person. Gas is also 2X. Housing should also be 2X since as a single, you can get another roommate to share the cost.
[quote=pencilneck]I may completely misunderstand the tax codes, but if you’re married can’t file individually or as a couple?
If you don’t like the “marriage penalty” file individually. I don’t understand the outrage (except by large income earning individuals who want to use their non working spouse as a tax break. If I were one of them I’d be pissed).[/quote]
You can’t file as individual if you’re legally married. That’s the way it works. The best you can do is file as “married filing separately” but that’s even worse when you compare to single filer.
