Marriage Penalty Relief
Married couples in which both spouses have income often pay more tax than they would as two single people. To alleviate this situation, the 2001 tax relief legislation offers relief in three ways:

1. The standard deduction for married couples filing a joint return will be increased, relative to the standard deduction for individuals filing as single, beginning in 2005. The schedule for increasing the deduction is:

   • 2005 - joint filers' deduction is 174% that of singles

   • 2006 - 184%

   • 2007 - 187%

   • 2008 - 190%

   • 2009 and later - 200%

2. The high end of the 15% tax bracket will be raised for married couples filing a joint return, so that it will eventually be twice that of single taxpayers. The schedule for increasing the bracket breakpoint is:

   • 2005 - joint filers' 15% bracket ends at an income level 180% that of singles

   • 2006 - 187%

   • 2007 - 193%

   • 2008 and later - 200%

3. Beginning in 2005, the standard deduction for a single individual and a married individual filing a separate return will be the same.

   This calculator will show the differences in standard deductions in the Marriage Penalty Relief row. Differences related to the 15% tax bracket are shown in the Total Savings row.