how does “getting married for tax purposes” work
In: Economics
It’s much less of a thing now with dual income families and couples typically in similar tax brackets (eg a doctor marries a lawyer, not a truck driver). Was much more of a difference in the time of single income families. The single guy making $50k saw his taxes go way down when he was married with a kid a year later. But now, when it’s a single guy making $50k and his new wife is making $45k, their taxes as a married couple earning $95k isn’t that different. Other benefits, like capital gains on sale of a house, as basically granting each individual the same savings as if they were single, eg. $250k in gains tax free for a single person, $500k for a couple.
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