2011, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $125,000 and Fred would have reported taxable income of $175,000. What is the couple’s marriage penalty or benefit?
The couple would have a marriage penalty of $5,191. That is they pay $5,191 more in taxes by filing jointly than their combined tax liability if they each had filed as a single taxpayer.
2011 Marriage penalty or (benefit) Two income vs. Single income married couple | ||||
Married couple | Taxable income | Tax if file Jointly (1) | Tax if file Single (2) | Marriage penalty (benefit) (1) – (2) |
Wife (Lisa) | $125,000 | $28,617† | ||
Hu*****and (Fred) | 175,000 | 42,647‡ | ||
Combined | $300,000 | $76,455* | $71,264 | $5,191 |
*$47,513.50 + [(300,000 – 212,300) × .33]
†$17,025 + [(125,000 – 83,600) × .28]
‡$42,449 + [(175,000 – 174,400) × .33]
