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 ?
Fix the marriage penalty by reducing the income phaseout threshold for the Child Tax Credit to $250,000 for all non-married filing jointly filers.
For income taxes, the marriage penalty still exists, especially for couples where both partners enjoy high incomes.
On Accounting Today, senior editor Roger Russell, a tax attorney, wrote: "The decision of the IRS to acquiesce opens the door for unmarried couples outside the 9th Circuit to claim the deductions subject to the increased limit, and adds an additional element to the marriage penalty under the Code.
If enacted, policymakers should at least match the childless worker EITC expansion with a married family expansion and consider additional steps to reduce the overall EITC marriage penalty.
Those reforms also seem to have reduced, though they have certainly not eliminated, the marriage penalty for low-income families, as a single woman now must enter the workforce to receive welfare assistance.
The marriage penalty was cited in the Association's latest online installment revealing real examples of how real people saved money when purchasing long term care insurance.
Moreover, joint filing causes three significant departures from marriage and couples neutrality: the singles penalty, the marriage penalty, and the marriage bonus.
Conversely, some couples may be hit with the so-called marriage penalty when the spouses have similar taxable incomes that, combined, exceed the 15% marginal bracket.
Data reflected a lifetime marriage penalty for women.
Kasprak cautions, however, that high-earning newlyweds may be subject to a marriage penalty (i.
Before the new law extended marriage penalty protection, couples would have moved from the 15% bracket to the 25% bracket with only $60,550 of taxable income.
The taxpayers argued, in turn, that when Congress used the half limitations for married persons filing separate returns, it intentionally created a marriage penalty not applicable to co-owners not married to each other.