...if it's because of the tax rate. Apparently, there are three ways tax rates are calculated:
- Single
- Married, filing jointly
- Married, separately
I can either choose filing jointly or separately, but either way, the final amount of taxes we need to pay as a couple is *more* than if we file separately as singles. Yes, it's not always true when conventional wisdom says marriage can save you taxes. Here are the tax rates: as you can see, at lower tax brackets, filing jointly translates to savings. But towards the high brackets, filing as a couple actually have the same rate as a single (which doesn't make any sense to me). And there is no way to go back, married filing separately only means both of us will be using half the bracket of filing jointly.
So it looks like the US government is encouraging poor people to get married, and rich people to remain single.
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Ed and I really should have got married because of tax savings! Since Ed had very little income during his training in Australia, my tax-exempt income in the US and HK has increased a lot!
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