I made significantly more than my spouse and that puts me in the 35% tax bracket. My spouse's income was only taxed at 10% federal rate from her company. When I put our W2s into TurboTax, my federal income tax liability increases by 15% of her salary, for a total of 35% for her tax liability. Is this really correct? My spouse has to pay into the same tax bracket as me when she makes less than 10% of what I'm making?
Lets say her income was $35,000 and she was taxed $3,500 at 10%. Turbotax is telling me that she really owes a total of at $12,250 at 35% (my income bracket). Really?
