Income TAX - I'm devastated - time to get a DIVORCE!

[SilvrT]

After all these years...and I even took courses on Tax preparation... I never knew this...

 

If I was single and my wife was single and we weren't living common law....we'd be getting a refund of just over $4000 between the 2 of us on our 2007 taxes. Since we're married (or even if we were living common law), we're getting a refund of appx $390. The reason is...as I sadly discovered...is because when the federal and provincial tax credits are calculated, it takes into account the spouse's NET income and since both of our net incomes are considerably more than the tax credit amounts, we both get NOTHING for a tax credit. In short, we are being penalized two-fold because we are married. What a freakin rip off!!!

 

And I would bet that the Canada pension will penalize us accordingly. Time to get a DIVORCE!

[MiCarl]

We used to have that. Called the "Marriage Penalty".

 

Laws were changed a few years ago and were supposed to correct that. I'm skeptical although I haven't run the numbers.

 

When I proposed to my wife she wanted to get married in December. I told her there was no way we were going to take a $9000 tax hit to be married for a month. We got married in February.

[MrRadi8]

That's why a lot of senior citizens get married in the church but not at the courthouse.

[Squeeze]

We here have it all the around, if you're married, you save Taxes, but a Divorce will cost you two Legs and one Arm, dued to Alimony.

[bongobobny]

Ah, yes, the old mariage penalty!! What other government promotes living in sin for economic reasons?!!?