3 ms·

> That’s true whether that $200k/year comes from one earner or two. In fact, if it comes from one earner you are a little better off tax-wise (because of the so

> That’s true whether that $200k/year comes from one earner or two. In fact, if it comes from one earner you are a little better off tax-wise (because of the social security cap.) Wait. What? Where are you that does not have tax brackets? Is that common in the US? In Australia you are substantially penalised for being a household that draws all your income from one person. It's not even close. And it's infuriating. One salary $200k/yr, in pocket after tax = $135,333 One salary $100k/yr, in pocket after tax = $75,813 Multiplied by two = $151,626 That's $1,385.50 difference in available income per month.

Negitivefrags 6y ago
In the US they have the concept of filing jointly. If you have one partner earning a lot more than the other then you can get tax bracket advantages of both when you pool your incomes together.
- Benjamin_Dobell 6y ago
  Interesting. I knew some countries in Europe had joint filing. I was unaware that the US did. Does anyone know what the requirements are for the non-working individual to be considered for joint filing? Say if you're on a working visa, but your spouse is not, presumably you don't get the tax benefits?
  - mariojv 6y ago
    I believe you'd still be able to file jointly if you're on a working visa and your spouse is not working, even if they don't reside in the US. The only caveat is that their worldwide income would be subject to US taxation if they have income from abroad. https://turbotax.intuit.com/tax-tips/family/claiming-a-non-citizen-spouse-and-children-on-your-taxes-/L6VM4IzTQ https://turbotax.intuit.com/tax-tips/family/claiming-a-non-c... "In general, resident aliens are taxed just like U.S. citizens. You would list a resident-alien spouse on your return and provide his or her Social Security number (SSN). If your spouse is not eligible for a Social Security number, he or she will need to apply for an Individual Taxpayer Identification Number (ITIN) from the IRS. If your spouse is a nonresident alien, you can treat your spouse as a resident alien for tax purposes. If you choose this option, you can file a joint tax return with your spouse and have an increased standard deduction. You increase your standard deduction, but all your spouse's worldwide income will be taxed by the United States." Reference on "Standard Deduction": https://en.wikipedia.org/wiki/Standard_deduction https://en.wikipedia.org/wiki/Standard_deduction
deleted 6y ago
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EdwardDiego 6y ago
Same in NZ, it'd be nice if income splitting were allowed but no-one seems interested in it. Instead we offer rather large tax rebates to people with children instead.
nmfisher 6y ago
Unless you have kids, which then opens up another world of benefits. The married, childless middle class really does get a bit screwed when it comes to taxes.
- Benjamin_Dobell 6y ago
  If we're still talking about Australia, there is no Family Tax Benefit for a single income provider earning above $104,281. It tapers off as you approach that. As a general rule the Australian Government make it very difficult for families to have a stay-at-home carer. It's substantially more viable (monetarily speaking) for most families to send their kids to daycare, which is Government supported, and both work.

Negitivefrags 6y ago

In the US they have the concept of filing jointly. If you have one partner earning a lot more than the other then you can get tax bracket advantages of both when you pool your incomes together.

Benjamin_Dobell 6y ago
Interesting. I knew some countries in Europe had joint filing. I was unaware that the US did. Does anyone know what the requirements are for the non-working individual to be considered for joint filing? Say if you're on a working visa, but your spouse is not, presumably you don't get the tax benefits?
- mariojv 6y ago
  I believe you'd still be able to file jointly if you're on a working visa and your spouse is not working, even if they don't reside in the US. The only caveat is that their worldwide income would be subject to US taxation if they have income from abroad. https://turbotax.intuit.com/tax-tips/family/claiming-a-non-citizen-spouse-and-children-on-your-taxes-/L6VM4IzTQ https://turbotax.intuit.com/tax-tips/family/claiming-a-non-c... "In general, resident aliens are taxed just like U.S. citizens. You would list a resident-alien spouse on your return and provide his or her Social Security number (SSN). If your spouse is not eligible for a Social Security number, he or she will need to apply for an Individual Taxpayer Identification Number (ITIN) from the IRS. If your spouse is a nonresident alien, you can treat your spouse as a resident alien for tax purposes. If you choose this option, you can file a joint tax return with your spouse and have an increased standard deduction. You increase your standard deduction, but all your spouse's worldwide income will be taxed by the United States." Reference on "Standard Deduction": https://en.wikipedia.org/wiki/Standard_deduction https://en.wikipedia.org/wiki/Standard_deduction

deleted 6y ago

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EdwardDiego 6y ago

Same in NZ, it'd be nice if income splitting were allowed but no-one seems interested in it. Instead we offer rather large tax rebates to people with children instead.

nmfisher 6y ago

Unless you have kids, which then opens up another world of benefits. The married, childless middle class really does get a bit screwed when it comes to taxes.

Benjamin_Dobell 6y ago
If we're still talking about Australia, there is no Family Tax Benefit for a single income provider earning above $104,281. It tapers off as you approach that. As a general rule the Australian Government make it very difficult for families to have a stay-at-home carer. It's substantially more viable (monetarily speaking) for most families to send their kids to daycare, which is Government supported, and both work.