Hello. Could use some advice on a tax return issue I've run into.
I got married last year and now has come time to file taxes. I use turbo tax. My own income has increased this past year by about 15% and my wife's has stayed roughly the same. Combining our 2 incomes in joint filing has us only a paltry amount over the 15% bracket, meaning 99.9% of our income is in the 15% bracket. We were both in the 15% bracket as single filers last year. So our bracket has not really changed, our deductions and credits haven't really changed either (mortgage interest, student loans interest, no kids). Yet we are getting back way less than we did as single filers last year. I would think we would get more back just based on the fact my income went back up by 15%, more income means more taxes withheld, which should mean higher return as well. The only real difference this year is that the $11900 standard deduction is more than our itemizations. My wife does not contribute much to the itemization compared to When I was a single filer, my mortgage interest always put me above the standard deduction.
I was under the impression that the so called Marriage penalty did not really exist in the 15% bracket. Is this normal to get less back as a joint filing? Both of us still have our W-4's set as Single as we did not bother to change those.