A consequence of the current tax system which results in most married people collectively paying more in taxes, whether they file jointly or separately, than they would if they weren't married, and were filing with single status. Various pieces of legislation have been passed which have removed this penalty in some circumstances, and currently the marriage penalty has been temporarily suspended for some of the lower tax brackets through 2010. Unless reinstated, or if new laws are passed, the penalty will take effect again in 2011.

Copyright©2009 by InvestorWords.com. ALL RIGHTS RESERVED.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com