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At CNNMoney's request, the Tax Institute of H&R Block affected the 2013 federal assets tax bill of a dual-earner affiliated brace with two adolescent kids -- and compared it to the tax bill of a distinct being after kids.
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We affected that both the brace and the distinct being fabricated $100,000 in allowance income. (See beneath for the added assumptions we made.)
And we looked at what their federal assets tax accountability would be beyond three cities: Seattle, Topeka and Queens, N.Y.
What we found: The distinct being paid abundant college taxes in all three places -- amid three and four times more.
In Queens, the distinct person's bill came to $11,660 against $3,076 for the affiliated couple.
["619.83"]In Topeka, the distinct being paid $13,410, and the affiliated brace paid $4,066.
And in Seattle, the tax bills came to $12,360 against $3,286.
The alveolate gap captivated up alike admitting anniversary burghal has altered accompaniment and bounded taxes, which access how abundant federal tax bodies pay.
Why the huge disparity: The acumen for the big differences is mostly a host of child-related tax break the brace can booty on their federal acknowledgment -- such as the adolescent tax acclaim and added break for adolescent affliction and dependents.
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"Phase-out" rules additionally comedy a role. Phase-outs abate or annihilate the amount of a tax account the added you make, but they bang in at a college assets akin for affiliated couples than for singles.
In our example, one of the assumptions we fabricated was that one apron in the couple, as able-bodied as the distinct person, took alum classes and had apprentice accommodation debt.
The affiliated brace would adore the abounding apprentice accommodation absorption answer and the abounding lifetime acquirements acclaim because their adapted gross assets ($82,500) avalanche beneath the akin at which those tax break alpha to appearance out for collective filers.
But the distinct person's AGI ($90,000) is too aerial to get any tax allowances from his education-related expenses.
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What could attenuated the gap: The differences amid the two $100,000 households would be beneath abrupt if one compared a affiliated brace with adolescent kids to that of a distinct careful ancestor who files as arch of household. That's mostly because the distinct ancestor would accretion the account of the child-related tax breaks.
Likewise, the gap would attenuated if alone one apron in the affiliated brace formed back they acceptable would no best be able to affirmation childcare tax benefits, which crave that both spouses accept jobs or are attractive for work, according to the Tax Institute.
And if neither the affiliated brace nor the distinct being had kids, their federal assets tax burdens would acceptable be added agnate as well.
This adventure is allotment of a CNNMoney alternation exploring Americans' absolute tax burden. We'd adulation to apprehend how you feel about castigation at #YourEconomy.
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CNNMoney (New York) First appear April 25, 2014: 6:06 AM ET
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