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Marriage and Taxes: What Can We Learn From Tax Returns Filed by Cohabiting Couples?

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  • Lin, Emily Y.
  • Tong, Patricia K.

Abstract

This paper analyzes the relationship between marriage and taxes by examining federal income tax returns filed by cohabiting couples. We use tax return data to estimate the tax consequences of marriage for cohabiting couples by comparing their tax liabilities from their separately filed returns to the tax they would owe if they were married and filed jointly. Under 2007 law, we determine that 48 percent of couples in our sample would have a marriage penalty and 38 percent would have a marriage bonus. We explain these results by examining the couples’ family characteristics and various components of the tax system.

Suggested Citation

  • Lin, Emily Y. & Tong, Patricia K., 2012. "Marriage and Taxes: What Can We Learn From Tax Returns Filed by Cohabiting Couples?," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(4), pages 807-826, December.
    • Handle: RePEc:ntj:journl:v:65:y:2012:i:4:p:807-26
    DOI: 10.17310/ntj.2012.4.04
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    References listed on IDEAS

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    1. Dickert-Conlin, Stacy & Houser, Scott, 1998. "Taxes and Transfers: A New Look at the Marriage Penalty," National Tax Journal, National Tax Association, vol. 51(n. 2), pages 175-217, June.
    2. Eissa, Nada & Hoynes, Hilary Williamson, 2000. "Explaining the Fall and Rise in the Tax Cost of Marriage: The Effect of Tax Laws and Demographic Trends, 1984-97," National Tax Journal, National Tax Association, vol. 53(n. 3), pages 683-712, September.
    3. Alm, James & Whittington, Leslie A., 1996. "The Rise and Fall and Rise ... of the Marriage Tax," National Tax Journal, National Tax Association, vol. 49(4), pages 571-89, December.
    4. Sjoquist, David L. & Walker, Mary Beth, 1995. "The Marriage Tax and the Rate and Timing of Marriage," National Tax Journal, National Tax Association, vol. 48(4), pages 547-58, December.
    5. Alm, James & Whittington, Leslie A., 1996. "The Rise and Fall and Rise ... Of the Marriage Tax," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(4), pages 571-589, December.
    6. Alm, James & Whittington, Leslie A., 1997. "Income taxes and the timing of marital decisions," Journal of Public Economics, Elsevier, vol. 64(2), pages 219-240, May.
    7. Dickert-Conlin, Stacy & Houser, Scott, 1998. "Taxes and Transfers: A New Look at the Marriage Penalty," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(2), pages 175-217, June.
    8. Harvey S. Rosen, 1987. "The Marriage Tax is Down But Not Out," NBER Working Papers 2231, National Bureau of Economic Research, Inc.
    9. Sjoquist, David L. & Walker, Mary Beth, 1995. "The Marriage Tax and the Rate and Timing of Marriage," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(4), pages 547-558, December.
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    Cited by:

    1. James Alm & J. Sebastian Leguizamon, 2015. "Whither the Marriage Tax?," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(2), pages 251-280, June.
    2. Emily Y. Lin & Joel Slemrod, 2024. "Gender tax difference in the U.S. income tax," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(3), pages 808-840, June.
    3. Salvador Ortigueira & Nawid Siassi, 2016. "Anti-poverty Income Transfers in the U.S.: A Framework for the Evaluation of Policy Reforms," Working Papers 2016-04, University of Miami, Department of Economics.
    4. James Alm & J. Sebastian Leguizamon & Susane Leguizamon, 2023. "Race, Ethnicity, and Taxation of the Family: The Many Shades of the Marriage Penalty/Bonus," National Tax Journal, University of Chicago Press, vol. 76(3), pages 525-560.
    5. Hermann Buslei & Katharina Wrohlich, 2014. "Besteuerung von Paaren: das Ehegattensplitting und seine Alternativen," DIW Roundup: Politik im Fokus 21, DIW Berlin, German Institute for Economic Research.

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