iStock/ThinkstockThere are a lot of financial benefits to being married. But that’s not always the case at tax time.
“There’s both a marriage penalty, but also because we have something called the Alternative Minimum Tax, which snags a lot of people and you end up owing money when you’re not prepared for it,” says accounts Janice Hayman.
So, she says, sometimes it’s better to go it alone — at least in the eyes of the IRS.
“The other concern with filling out a W-4 when you have a two-income household and they’re both high-income earners, often, the best choice is to select ‘married, but withhold at the higher single rate,'” Hayman notes.
The IRS has a withholding calculator on its website, IRS.gov, which can help you determine if you’re having enough taken out of your earnings.
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