Marriage penalty

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Marriage penalty

A tax that has the effect of penalizing a married couple because they pay more tax on a joint tax return than they would if they file tax returns individually.

Marriage Penalty

The higher tax rate that some married couples pay when they file jointly for their income taxes. Married couples filing jointly have different tax brackets than single persons; this can work to the advantage of couples with highly disparate income and single income households; however, it can work to the disadvantage of couples with roughly the same income. One refers to this as the marriage penalty. Some married couples file as single person to avoid the marriage penalty.
References in periodicals archive ?
Making the Child Tax Credit more meaningful for the working class; Eliminating marriage penalties in the tax code; and Promoting paid family leave.
Existing research primarily relies on hypothetical situations to document EITC marriage penalties, with little empirical work exploring penalties based on real-life situations.
especially, might face larger marriage penalties in 2013 than they had in 2010.
Instead, the current regime would in fact exacerbate marriage penalties and marriage bonuses.
Observers note that some couples might prefer to retain state protections respecting community property (tenancy by the entirety), healthcare provisions and insurance benefits, while circumventing marriage penalties under federal tax law.
Defining and measuring marriage penalties and bonuses.
Also marriage penalties, marriage bonuses, passive investment rules, divorce property settlements and preferential treatment of donations to charitable organizations of securities and cash versus other assets--all are discriminatory, he says.
63-68); greatly reduce marriage penalties by giving married taxpayers a tax rate schedule with brackets twice as wide as those applicable to single taxpayers and by giving married taxpayers a "family credit" twice as large as a single person's credit (p.
To illustrate marriage penalties and bonuses more precisely, consider the following hypothetical couples.
They calculate marriage penalties and reductions in marriage bonuses using alternative approaches and assumptions, with the Treasury Department's micro-simulation model.
The proposal is an effort to fulfill a range of aims: general, progressive tax relief; tax simplification; enhancement of work incentives; and reduction of marriage penalties.
This U-shaped pattern of benefits by income, which Ellwood and Liebman call the "middle-class parent penalty," not only raises issues of fairness, it also generates high or higher marginal tax rates and marriage penalties for moderate income families than for more well-to-do taxpayers.