Over there Boxer notes:
“Children are expensive. When you date a wimminz who has little kids, you will not only be paying more money, but you’ll also be expected to part with more of your time. You can work smarter to make up for the first, but the amount of moments in your life is finite, and there’s no way to turn back the hour-hand in your life.”
Children can be expensive, but if a man chooses to marry a single mother, the State helps mitigate this by favoring married families. Your time is finite. Ultimately it is for you to decide if being a father to a single mom’s kids is valuable. Ideally in this evaluation, you will worry less about the money and more about vetting those relationship choices. Depending on how much he makes and how many kids he is responsible for, he might even save money by marrying.
The 2018 tax year incorporates changes to the standard deduction and the way children are deducted. This means lower taxes for most people with children and relatively higher taxes for those without children and those who pay a lot in state and local income and property taxes. In short, if you are a typical family man living in state with low taxes you will benefit most.
For a married couple, a single child is worth a credit of $2000. The federal income tax is a progressive tax, so the tax bracket increases from 10% to 12% to 22% with greater income. The credit, for each child, corresponds to the tax income of $20000, $16667, and $9090 (respectively). The following chart shows the tax benefits of children for a married couple:
For example, a married 2-child family making $60000 will pay nothing in federal income taxes. If the couple has 3 children, that number increases to $77000. They’ll still pay FICA taxes (6.2% Social Security; 1.45% Medicare), but they avoid those 10%, 12%, and 22% tax rates until they make a comfortable combined wage:
Regardless of the number of children, the typical married man will not be taxed above a 12% rate until family income is in the six-figures.
Over at Finances for Marriage-minded Men, I described the plan for married men. Men should aim for a sensible career with an expected income in the range of $50,000 to $100,000. They should live in areas with low taxes. If they choose to have 2 or 3 children, typical of many American families, they can live comfortably (even with a stay-at-home-mom) and benefit from the current tax code.
Article text and photo by Derek L. Ramsey is licensed under a CC-BY-SA 4.0 License.