![]() Over the years, Congress has taken steps to reduce the effects of the marriage penalty. Marriage penalties typically occur when the tax brackets, standard deductions, and other aspects of the tax code available to married couples aren't double those available to single taxpayers. Maybe you've heard of the so-called marriage tax penalty: a quirk in the tax law that sometimes causes married couples to pay more income tax than they would if they had remained single. Here are some of the most important things you should know. Taxes might be the last thing on your mind on your wedding day, but tying the knot can have a big impact on your tax situation. If you sell a home, the amount of tax-free profit you can receive from the sale of your home doubles from $250,000 to $500,000 once you’re married, provided at least one of you owned the home for at least two of the last five years, and both of you lived in it for at least two of the last five years.Using the Married Filing Separately status rarely lowers a couple's tax bill and comes with several special rules, including not being eligible for education credits or deducting student loan interest.When one spouse earns substantially more than the other, combining the incomes on a joint return may pull some of the higher earner's income into a lower bracket, resulting in the “marriage bonus.”.The sole exception is for the highest tax rate of 37%, which applies when taxable income exceeds $693,750 for married couples filing jointly, compared to $578,125 for single taxpayers (tax year 2023). To reduce the so-called marriage penalty, Congress made the thresholds for six of the seven tax brackets for married couples filing joint returns exactly double those available to single filers.
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