Having just finished filing the taxes for this family unit I got to wondering how gay married couples are handling the federal marriage penalty tax. For those who aren’t familiar, the marriage penalty is a tax on those who work, make roughly the same amount of money, and are married. Since the Feds now recognize gay marriage, this means that many gay professionals who get married now find themselves subjected to the same marriage tax that their straight friends are.
USA Today has a good breakdown on the Marriage Penalty for those who aren’t familiar with it. It notes, “For a single filer, this bracket ends at an income of $89,350. If you simply doubled that number to get the top amount for joint filers, you’d see $178,700. But, unfortunately, that’s not how it works. For 2014, the 25 percent tax bracket ends at $148,850 for married couples filing jointly. Thus, they find themselves penalized for their combined income.”
I’m not sure what the history of the Marriage Penalty is, whether it was an unintended side effect as more women joined the work force or whether it was intentional. Either way one thing’s for sure: the Feds are hooked on the Marriage Penalty income and won’t be changing it anytime soon. So to all those gay DINK couples, hope the fight was worth it.