What Is the Marriage Deduction?

The standard federal income tax deduction for a married couple filing jointly in 2010 is $11,400. This amount is subject to change each tax year and is set equal to two-times the standard deduction applied to a single individual.

History

Prior to 2003, the marriage deduction was less than two-times the deduction for a single person. This was often called the "marriage penalty," but it was removed in the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Significance

With the adjustment, a married couple has no disincentive to file jointly. Married persons filing singly are eligible for a standard $5,700 deduction each in 2010, and this is equal to the married deduction.

Function

The standard deduction is used when an individual does not plan on itemizing deductions.

Considerations

The standard deduction should only be used when it is greater than the estimated sum of all other deductions. Therefore, it is commonly used among individuals who do not have a number of tax deductions such as mortgage interest or charitable contributions.

Misconceptions

There is no tax benefit to marriage through straight deduction. However, married couples filing jointly may see increases in the limits they can contribute to IRAs and other accounts, thanks to the consideration made for the potential of dual-incomes.

Tips

If a married couple has a dependent, i.e., child, there is a deduction and other benefits to decrease the couple's taxable income.

References

• IRS: Tax Withholding Tables
• Tax Policy Center: 2010 Individual Income Tax Rates, Standard Deductions, Personal Exemptions, and Filing Thresholds