The financial advantages of NOT getting married

[Anonymous]

Anonymous wrote:For the PSLF folks, there's a loophole that you may qualify for, although it's not perfect. You can file separately, but make sure that you ask for the IBR or ICR plans. No PAYE or REPAYE. They don't factor in the spouse's income at all. HOWEVER, filing separately will reduce you down to $5000 on SALT (it splits it from joint), and you can no longer deduct student loan interest.

Can you file separately and then later amend your tax filing to joint? Quite the crazy marriage penalty, wow

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Op—there is a legal marriage and a religious marriage. Have the religious ceremony but not the legal one. The legal one causes the tax issues. The religious one offers the ability oncommit to on another in front of friends and family.

If you’re in track to get married, you should be able to have an open discussion with your fiancée about the very real and annual financial impacts.

Most clergymen will require you to produce a marriage license before marrying you. Generally you can't get married religiously in a legit place unless you're legally married as well. Clergy doesn't want to be involved in anything the state hasn't blessed.

it doesn't have to be a real clergyman. I have friends who get an online certification to marry people.

OP I'm sure if you want to, you can get a religious or spiritual ceremony without a license.

Oh and I don't think a license is valid until it's signed by witnesses, right? I don't remember if you have to return it/file it after the fact.

The clergy person who conducted the religious ceremony is supposed to sign it and send to the state. That's what happened in our case at least.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For the PSLF folks, there's a loophole that you may qualify for, although it's not perfect. You can file separately, but make sure that you ask for the IBR or ICR plans. No PAYE or REPAYE. They don't factor in the spouse's income at all. HOWEVER, filing separately will reduce you down to $5000 on SALT (it splits it from joint), and you can no longer deduct student loan interest.

Can you file separately and then later amend your tax filing to joint? Quite the crazy marriage penalty, wow

Thank the GOP for their god awful tax distortions they embedded in the recent legislation

[Anonymous]

Have you told your future wife yet you don’t want to marry her for financial gain? I’m sorry, but this is ridiculous. I think you aren’t being honest with yourself about whether you want to commit. You want to maintain your “out”

[Anonymous]

Anonymous wrote:Have you told your future wife yet you don’t want to marry her for financial gain? I’m sorry, but this is ridiculous. I think you aren’t being honest with yourself about whether you want to commit. You want to maintain your “out”

I'm a woman and I disagree. You have to at least have the conversation. If she thinks it's worth $10k or whatever a year, and he doesn't agree, *then* they have a problem.

[Anonymous]

Anonymous wrote:Have you told your future wife yet you don’t want to marry her for financial gain? I’m sorry, but this is ridiculous. I think you aren’t being honest with yourself about whether you want to commit. You want to maintain your “out”

Agreed. I think he has more problems than a potential tax hit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Have you told your future wife yet you don’t want to marry her for financial gain? I’m sorry, but this is ridiculous. I think you aren’t being honest with yourself about whether you want to commit. You want to maintain your “out”

I'm a woman and I disagree. You have to at least have the conversation. If she thinks it's worth $10k or whatever a year, and he doesn't agree, *then* they have a problem.

OP here:

This is what we did. I had to tell her so we could make a decision together. It looks like it will cost us - on average - about an extra $10K per year (post tax dollars) for the next 5 years if we change our tax status from "single" to "married." Perhaps more if one or both of us get a big raise in the next 5 years.

We can replicate a de-facto marriage in many ways - "domestic partner" declaration with our respective employers, filing for "domestic partnership" with the District of Columbia (which regulates Healthcare and Decision Making, Taxes, Death and Inheritance, Property, Pre-marital Agreements & Alimony, Government Services, and Protections Under DC Domestic Violence Laws), draft wills and power of attorney (which we would do anyway after getting legally married), designate each other a primary beneficiary for life insurance plans, etc. We can get about 90% there at replicating a legal marriage without filing the paperwork with the state.

So that's basically it.

[Anonymous]

Maybe a more appropriate topic is the financial advantage of NOT having kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Speak to an accountant? I thought married people get more tax benefits than singles in this country.

The tax code is written to advantage a married couple with a SAH spouse who doesn't earn income.

I make $125K and she makes $135K. The new bill especially screws over two working spouses with similar incomes.

So get a better job and fully support your wife. P

[Anonymous]

We are going from a $30k marriage penalty before the tax reform bill to $0 this year. I feel like you're probably relying on outdated info.

[Anonymous]

Anonymous wrote:We are going from a $30k marriage penalty before the tax reform bill to $0 this year. I feel like you're probably relying on outdated info.

You clearly don’t file your taxes separately. OP’s situation is that if he gets married he will have to file separately.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are going from a $30k marriage penalty before the tax reform bill to $0 this year. I feel like you're probably relying on outdated info.

You clearly don’t file your taxes separately. OP’s situation is that if he gets married he will have to file separately.

Agreed. You would all be saving so much more in corporation taxes by individually filing but I'm guessing you do joint because you have dependents.

[Anonymous]

Shit, just stay single. Keep separate homes, don't reproduce and don't lie to friends and family. EASY!

[Anonymous]

Anonymous wrote:We are going from a $30k marriage penalty before the tax reform bill to $0 this year. I feel like you're probably relying on outdated info.

How did this work out?

We didn't get any significant penalty or benefit from being married

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are going from a $30k marriage penalty before the tax reform bill to $0 this year. I feel like you're probably relying on outdated info.

How did this work out?

We didn't get any significant penalty or benefit from being married

You need to make more money. Marriage penalty is super harsh for two high earners who make around the same amount of money.

There is a big marriage benefit for one high earning spouse and one stay-at-home spouse. The stay-at-home spouse reduces the high earner's tax liability.