Gary Bode, CPA: if you watch the pennies, the dollars take care of temselves. Sometimes anyway. (910) 399-2705.
NC is one of sixteen States with an income tax marriage penalty, according to a 2012 map from the Tax Foundation, which they credit to their 2012 State Business Tax Climate Index. Why write a post about it? I can’t be the only Wilmington NC CPA who gets questions about the marriage tax penalty secondary to our 2012 NC ban on gay marriage. Is the marriage tax penalty a big deal? No; see below.
So how is the NC Marriage Tax Penalty?
Of course NC doesn’t intentionally punish married folks with extra tax. But the NC marginal tax rates and income brackets do result in a discrepancy. A couple with both the husband and wife each making $70,000 of taxable NC income, pays $192.50 more than two single people each making $70,000 of NC taxable income.
Should you file as Married Filing Separately in NC?
Generally no, because you’d have to file your IRS return with the same status. And any CPA will tell you that’s almost always a bad decision for married folks.
I’m a Wilmington NC CPA with a virtual office to add convenience for our local clients. $192.50 isn’t much for a married couple making $140,000 per year. But my attitude is that if a CPA watches the pennies, often the dollars take care of themselves. There are hundreds of posts on this website. If you’re looking for a CPA, please read of few of them to gauge my abilities and philosophy. For a free phone consult please call (910) 399-2705.
