The stacking effect has nothing to do, however, with the width of joint-return rate brackets relative to the width of the rate brackets for
unmarried taxpayers, and so has nothing to do with marriage penalties per se.
In 2009, the IRS Office of Chief Counsel issued Chief Counsel Advice (CCA) 200911007, which stated that when homes are jointly owned by
unmarried taxpayers, the limits of Sec.
However, the JCT cautions that different rules for
unmarried taxpayers create complexity and place unmarried parents at a disadvantage when compared to other types of extended family situations.
The AMT exemption was increased to $40,250 for
unmarried taxpayers, $58,000 for married filing jointly (MFJ) and $29,000 for married taxpayers filing separately.
In 2005, the AMT exemption reverts to the current amount of $45,000 for married couples filing a joint return and surviving spouses, $33,750 for
unmarried taxpayers (not surviving spouses), and $22,500 for married taxpayers filing separately.
The $100,000 limit applies to
unmarried taxpayers as well as to married taxpayers filing joint returns.
Unmarried taxpayers who are cohabiting should review the tax consequences of their arrangement.
Married taxpayers Former Revised Exclusion Year threshold threshold ends 1993 $60,000 $68,250 $ 98,250 1994 $61,850 $70,350 $100,350 1995 $63,450 $72,150 $102,150
Unmarried taxpayers Former Revised Exclusion Year threshold threshold ends 1993 $40,000 $45,500 $60,500 1994 $41,200 $46,900 $61,900 1995 $42,300 $48,100 $63,100
Head-of-household status is available for
unmarried taxpayers who provide more than half the cost of maintaining a household for a taxpayer's unmarried children living at home for the entire year, his or her parents (whether or not living in the taxpayer's household) or a relative who qualifies as a dependent.
