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Single women are (STILL) losing in today's economy
https://www.businessinsider.com/costs-of-being-single-woman-taxes-wages-social-life-2022-2Sometimes it feels as if everyone is pushing women to get married — even the US government.
While more millennials are postponing or forgoing marriage, the economy hasn't caught up.
Single people pay more for housing, social life, and taxes — and they get paid less.
. . .
As millennials created a new version of the American dream, the single life has become more socially acceptable — and preferable for many. But while stigmas have shifted, the economic system that incentivizes marriage hasn't. The costs of being single show up in everything from social life to the tax code, housing, and health insurance.
While costs are higher for singles, they also tend to earn less on average than their partnered counterparts. Plus, women, who already earn less than men on average, are even further behind if they are Black or Hispanic. That disparity becomes even more problematic as millennials weather yet another economic woe: 40-year-high inflation.
. . . .
While couples that earn about the same income see little to no benefit from filing jointly, couples in which one partner earns all or most of the income benefit from a "marriage bonus" in which the higher earner's bracket can drop after marriage. Married couples also enjoy more tax breaks than single filers, such as a larger standard deduction.
Insider calculated the taxes for an American who earned $50,000 for the 2021 tax year using the Tax Policy Center's marriage calculator. With no itemized deductions, they would owe $4,314. If they married a partner who didn't work, earning no income, together they would only owe $2,629 in taxes because $50,000 falls into a lower tax bracket when married.
Healthcare, Social Security, and retirement accounts all follow suit. For some married couples, it can be cheaper to add a spouse onto their employer-sponsored health insurance than to have separate policies. Spouses can also receive up to 50% of their other half's Social Security benefit, depending on their earnings. IRA and Roth IRA income limits are also higher for married couples with one income.
That's not to mention the challenges women already face on these fronts, who have less money saved for retirement and spend about $15,000 more on healthcare than men during retirement, according to a 2019 Fidelity analysis.
While more millennials are postponing or forgoing marriage, the economy hasn't caught up.
Single people pay more for housing, social life, and taxes — and they get paid less.
. . .
As millennials created a new version of the American dream, the single life has become more socially acceptable — and preferable for many. But while stigmas have shifted, the economic system that incentivizes marriage hasn't. The costs of being single show up in everything from social life to the tax code, housing, and health insurance.
While costs are higher for singles, they also tend to earn less on average than their partnered counterparts. Plus, women, who already earn less than men on average, are even further behind if they are Black or Hispanic. That disparity becomes even more problematic as millennials weather yet another economic woe: 40-year-high inflation.
. . . .
While couples that earn about the same income see little to no benefit from filing jointly, couples in which one partner earns all or most of the income benefit from a "marriage bonus" in which the higher earner's bracket can drop after marriage. Married couples also enjoy more tax breaks than single filers, such as a larger standard deduction.
Insider calculated the taxes for an American who earned $50,000 for the 2021 tax year using the Tax Policy Center's marriage calculator. With no itemized deductions, they would owe $4,314. If they married a partner who didn't work, earning no income, together they would only owe $2,629 in taxes because $50,000 falls into a lower tax bracket when married.
Healthcare, Social Security, and retirement accounts all follow suit. For some married couples, it can be cheaper to add a spouse onto their employer-sponsored health insurance than to have separate policies. Spouses can also receive up to 50% of their other half's Social Security benefit, depending on their earnings. IRA and Roth IRA income limits are also higher for married couples with one income.
That's not to mention the challenges women already face on these fronts, who have less money saved for retirement and spend about $15,000 more on healthcare than men during retirement, according to a 2019 Fidelity analysis.
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