A little venting and a little advice if you have any...

jcausey

My fiance and I have been engaged for over a year. Not really even planning a wedding. We have 4 kids total (his, mine, and ours). For tax reasons we have decided not to get married for a few years. I know this may affect things in the future (social security, medical, etc.). However right now we make about $37,000 a year together. We have realized that it is better for us (financially) for us to not get married. As it is know we can each claim 2 kids and get about $7000 each back when we file taxes. This money is being used to pay all of our bills up of the year. (one years house payments, land payments, house insurance, etc.) I've done the research and if we get married we will only get back about $7000 for both of us. This is were the venting comes in... Why does the government think that it is ok to penalize you for being married? We both work, we don't live off of the government (medicaid, food stamps, etc.) even though we could. Just wondering has anyone else come across this problem?

HobokensFury

I can only speak for myself but we would up with a larger return as a married couple this year. I usually get about 3k back and DH usually has to pay a few hundred dollars.  This year we are getting about double back.

misshart00

I've had to pay for several years and so has H. Since we got married last year, we're getting back about 2000. Can you file separately? Is that possible?

QueerFemme

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:3607ee7d-b64f-494c-abaa-f45f310a1ae0">A little venting and a little advice if you have any...</a>:
[QUOTE]My fiance and I have been engaged for over a year. Not really even planning a wedding. We have 4 kids total (his, mine, and ours). For tax reasons we have decided not to get married for a few years. I know this may affect things in the future (social security, medical, etc.). However right now we make about $37,000 a year together. We have realized that it is better for us (financially) for us to not get married. As it is know we can each claim 2 kids and get about $7000 each back when we file taxes. This money is being used to pay all of our bills up of the year. (one years house payments, land payments, house insurance, etc.) I've done the research and if we get married we will only get back about $7000 for both of us. This is were the venting comes in... Why does the government think that it is ok to penalize you for being married? We both work, we don't live off of the government (medicaid, food stamps, etc.) even though we could. Just wondering has anyone else come across this problem?
Posted by jcausey[/QUOTE]

Most of the time, you would end up getting more back if you filed married.  I don't know why your situation is different... maybe it's the salary range you are in.

I know for me, I wish we could file jointly.  I would probably have ended up with about $6000.00 more back.

Avion22

You can always file "married filing separately."  You don't HAVE to be penalized for being married....

ETA:  separately, not jointly....fixed

daveANDkristen

The government is not penalizing you for getting married.  You are simply getting a tax break for being a single (unmarried) parent.  H and I will get more back this year because we are married.  Most unmarried people do not get 7000 back.  It depends on your tax bracket and allowances, of course, but I've never gotten more than 1000 back. 

QueerFemme

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:e7095ae0-f416-45a6-af88-27480bec8790">Re: A little venting and a little advice if you have any...</a>:
[QUOTE]<strong>The government is not penalizing you for getting married</strong>.  You are simply getting a tax break for being a single (unmarried) parent.  H and I will get more back this year because we are married.  Most unmarried people do not get 7000 back.  It depends on your tax bracket and allowances, of course, but I've never gotten more than 1000 back. 
Posted by daveANDkristen[/QUOTE]

This.  It sounds like alone, on paper, it really looks like you are both single parents raising two kids each, so you each get child deductions, and possibly, and because of your salaries, earned income credit.

JaxInBlue

Agree with daveAND and cmgilpin.  It's highly likely that your combined income bracket and perceived single parent status that are giving you the returns you are seeing.  You may actually see additional returns filing as a married couple - it depends on where you fall on the EITC scale.  You might want to consider talking with an accountant (especially since this is tax season and there are a lot of clinics) to determine how your rebate status could change.

McRogol

I agree with the PP...Your tax return amount is really not reflective of your marital status, it's reflecting that you have 2 dependents and are eligible for the EITC.  Also, since you each of children from a previous situation, you can marry but not file jointly and each claim your own children.  The government is for sure not penalizing you for getting married, in fact they're helping you with the EITC.  I think some tax education would do you good.

QueerFemme

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:23ed4625-341a-46e0-a6e1-ed6bffbf1580">Re: A little venting and a little advice if you have any...</a>:
[QUOTE]I agree with the PP...Your tax return amount is really not reflective of your marital status, it's reflecting that you have 2 dependents and are eligible for the EITC.  Also, since you each of children from a previous situation, you can marry but not file jointly and each claim your own children.  The government is for sure not penalizing you for getting married, in fact they're helping you with the EITC.  <strong>I think some tax education would do you good.
</strong>Posted by McRogol[/QUOTE]

<strong>from OP's post

However right now we make about $37,000 a year together. We have realized that it is better for us (financially) for us to not get married. As it is know we can each claim 2 kids and get about <u>$7000 each</u> back when we file taxes.
</strong>

After re-reading the original post, and the "tax education would do you good comment", I started thinking... at $37,000.00 per year.  OP and her FI probably didn't even pay close to $14,000.00 in taxes.  I'm a huge advocate of the EITC for lower income people/families.   And if it makes sense for OP to stay legally unmarried for financial reasons, then fine. That's a perfectly valid decision.

But, realize that the government isn't "penalizing" you.  Based on that salary, and the amount you are getting back, you are basically getting free money every year in your "refund".  I use quotations around "refund", because it sounds like you are being refunded 100% of the taxes you paid, plus getting some extra.  So, it's not even really a refund.  It's a refund plus a bonus.

jcausey

To explain things alittle better... You can only claim 3 children and get earn income credit and we have 4. So we are loosing about $3000 on the fourth child, but since we aren't married yet he can claim 2 and I can claim two. If we file married seperate you can't get the credits. I wish we could claim all four. That would fix it all.

daveANDkristen

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:02c75cda-6be8-4fed-9e12-afaba3d7b51f">Re: A little venting and a little advice if you have any...</a>:
[QUOTE]In Response to Re: A little venting and a little advice if you have any... : This.  We file separately because I get more back that way, which covers more of what H has to pay in. And for the record, you aren't being punished for being married.  The idea is that the tax break is for single parents raising a kid on one income.  Technically, you are just working a legal loophole to get more money back that the government intends by combining your income and expenses without being married. <strong>ETA:  And honestly, while I have no problem paying in my fair share of taxes or helping out families who need it, hearing someone complain about ONLY getting $7k back vs $14k when they didn't pay nearly that much into the system chaps me.
</strong>Posted by StageManager14[/QUOTE]

Word.

mandi195

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding%20BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:02c75cda-6be8-4fed-9e12-afaba3d7b51f">Re: A little venting and a little advice if you have any...</a>:
[QUOTE]And honestly, while I have no problem paying in my fair share of taxes or helping out families who need it, hearing someone complain about ONLY getting $7k back vs $14k when they didn't pay nearly that much into the system chaps me.
Posted by StageManager14[/QUOTE]

ditto!

QueerFemme

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:46b55299-f042-41c3-a103-b7f79eb4517e">Re: A little venting and a little advice if you have any...</a>:
[QUOTE]To explain things alittle better... You can only claim 3 children and get earn income credit and we have 4. So we are loosing about $3000 on the fourth child, but since we aren't married yet he can claim 2 and I can claim two. If we file married seperate you can't get the credits. I wish we could claim all four. That would fix it all.
Posted by jcausey[/QUOTE]

But, right now, you ARE claiming all four. Because you are each claming two.  You are getting the benefit of appearing (on paper) like you are both single parents, which, you are clearly not. 

I am a huge advocate of EITC and I have no problem with you getting that credit or any other social program benefit that you are eligible for based on your income, but you really need to recognize that you are basically getting free money. You didn't pay that money into the system, but, it's being given to you anyway.   So, I'm not sure where you really think you have a whole lot of room to complain about anything. Even getting $7K back, that's probably more than you paid in federal taxes for a year.  So, even with the lower refund, you probably aren't paying any taxes at all for the year. 

I just think it's really important that you have some perspective.  I think I paid a few thousand dollars less between federal and state taxes as you earn every year.  And since I don't have any kids, I don't get those deductions.  My refund... was less than $6K.  So, you probably paid $2500.00 in taxes, but you got $14K back.  I paid $30K+ in taxes, and I'm getting $6K back.

So, because you are in a lower salary bracket and you chose to have 4 kids, you get huge tax benefits that you didn't have to pay into.  I'm a higher earner, and I don't have any kids, so I pay more, and get significantly less back.  Which again, is fine. I'm all about that redistribution of wealth and helping people support their kids/families.  But, I'm honestly not sure what you are complaining about.

RamonaFlowers

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding%20BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:02c75cda-6be8-4fed-9e12-afaba3d7b51f">Re: A little venting and a little advice if you have any...</a>:
[QUOTE]In Response to Re:  And honestly, while I have no problem paying in my fair share of taxes or helping out families who need it, hearing someone complain about ONLY getting $7k back vs $14k when they didn't pay nearly that much into the system chaps me.
Posted by StageManager14[/QUOTE]


My mind, you are reading it.

HobokensFury

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding%20BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:02c75cda-6be8-4fed-9e12-afaba3d7b51f">Re: A little venting and a little advice if you have any...</a>:
[QUOTE]  And honestly, while I have no problem paying in my fair share of taxes or helping out families who need it, hearing someone complain about ONLY getting $7k back vs $14k when they didn't pay nearly that much into the system chaps me.
Posted by StageManager14[/QUOTE]

Cosigned me!  I'd be "rich" if I got more money than I paid in taxes as a refund.

MsYeck

Seriously just get married even "losing" the one child credit if you do even 5 minutes of research like I did ou will find that at your earnings your whole family of 6 will qualIfy for Medicaid and about $300 a month in foodstamps. The two combined values should be well over the 7k you mentioned. Also a family of 6 at that income shou D automatically qualify you for free private education and the free lunch program. The fact that you are dishonestly milking the system really irks me. I don't have a problem with my at dollars helping others that are earnestly working full-time jobs but only if they are doing it te right and honest way. People like you are what ha gotten the country in the position it is in.

QueerFemme

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_chit-chat_a-little-venting-and-a-little-advice-if-you-have-any?plckFindPostKey=Cat:Wedding BoardsForum:14Discussion:55d7e523-4d93-4c69-85d8-4bb54aa6b6b1Post:73803782-6758-41a5-957a-25b5e20f22d8">Re: A little venting and a little advice if you have any...</a>:
[QUOTE]Seriously just get married even "losing" the one child credit if you do even 5 minutes of research like I did ou will find that at your earnings your whole family of 6 will qualIfy for Medicaid and about $300 a month in foodstamps. The two combined values should be well over the 7k you mentioned. Also a family of 6 at that income shou D automatically qualify you for free private education and the free lunch program. The fact that you are dishonestly milking the system really irks me. I don't have a problem with my at dollars helping others that are earnestly working full-time jobs but only if they are doing it te right and honest way. <strong>People like you are what ha gotten the country in the position it is in.
</strong>Posted by MsYeck[/QUOTE]

Ok this part?  totally untrue.  Wars, corporate bailouts, tax loopholes for the rich, ridiculously wasteful spending, in addition to all sorts of other issues is what got the country in this position.
OP's tax situation and people who are getting medical or tax benefits because they are poor is a tiny tiny tiny tiny drop in that bucket.