Here s a quick example. Federal income tax is calculated using a progressive tax rate, which means the more you make the higher percentage of income tax you pay. The first tax bracket is about 15 percent. But it s not only the tax brackets that pose a problem. There are other tax provisions that penalize married couples.
Many couples also buy a home for the first time when they get married.
Purchasing a home often means that you ll save money if you itemize such deductions as mortgage interest, real estate taxes, state income taxes and charitable gifts instead of using the standard deduction. You may also want to change your withholding amount at work after you re married. When you re single, you are automatically taxed at the single rate, although you can specify how many deductions your employer should use when calculating the amount withheld. When you marry, you can either maintain the same withholding amount or change it to reflect your married status less will be withheld from your paycheck. Whether couples should change their withholding depends on what their salary is and whether they have outside income, Ondik said.