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Tax Administration: Income Tax Treatment of Married and Single Individuals

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Report Type Reports and Testimonies
Report Date Sept. 3, 1996
Report No. GGD-96-175
Subject
Summary:

This report provides information on income tax provisions in the Internal Revenue Service (IRS) Code that potentially create "marriage penalties" or "marriage bonuses" with respect to the tax liability of married couples. A marriage penalty results when two married persons have a greater tax liability than two similar single persons--that is, individuals with the same total income. Conversely, a marriage bonus results when a married couple owes less taxes than two similarly situated single persons. GAO (1) summarizes the current income tax provisions in the IRS Code whose applicability depends upon whether a taxpayer is married or single, (2) identified provisions likely to result in marriage penalties or bonuses, and (3) discusses the feasibility of quantifying the numbers of taxpayers affected by marriage penalties and bonuses.

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