Tying the knot sometimes means paying more in taxes. Here’s when the ‘marriage penalty’ kicks in

SourceCNBC
SectorEconomy
CountryMiddle east

Some newlyweds get an unwelcome gift from the IRS: a bigger tax bill. While many couples end up paying less in taxes after tying the knot, some face a "marriage penalty" — that is, they end up paying more in taxes than if they had remained unmarried and filed as single taxpayers.The penalty occurs when tax-bracket thresholds, deductions and credits are not double the amount allowed for single filers — and it can impact both high and low earners, as well as younger or older taxpayers.More from Personal Finance:1 in 10 people fall victim to gift card scamsHere's how much you need to earn to afford a houseBuying Tesla with bitcoin could mean a tax billFor marriages that occurred at any point last year, you're required to file your 2020 tax return as a married couple, either jointly or separately. (However, filing separate returns as a married couple usually provides no financial benefit.) If you plan to marry this year, you've...read more...