Marriage doesn’t always mean lower taxes
single filers and $250,000 for married filers. The tax rates on long-term capital gains would be kept at the current 0 percent, 15 percent and 20 percent.
The plan proposes a full repeal of the AMT and the estate tax. Under current law, estates valued at more than $5.45 million are subject to a 40 percent tax rate. Cutting the AMT and estate tax would stand to benefit higher income earners the most.
Those taxpayers in the middle bracket will see a modest increase in income tax. Those in the highest bracket will see a decrease in income tax. These changes are yet to be decided and have changed significantly since Trump became president. It is likely they will change greatly over the next 12 months.
Since same-sex marriage became legal, these tax changes will affect the LGBT community in the same was as they affect the straight community.
Many of our clients assume that because they are married now, their tax situation will get better. This is often not the case. If there are two high-income earners in the marriage, you will likely see a tax increase because you