Joint Filing

• Prior to the 2001 signing of former President George W. Bush's Economic Growth and Tax Relief Reconciliation Act (EGTRRA), married couples often experienced what was commonly referred to as the "marriage penalty" in the tax field. Because the tax rate increases as income increases, dual income married couples often found themselves paying a higher tax rate than they might have otherwise paid as a single person. EGTRRA was designed to provide some relief from this extra tax. Originally set to expire in 2010, EGTRRA was extended for two more years by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. Because of this, one of the current tax advantages associated with marriage is that married couples filing jointly enjoy a lower tax rate than those filing single. A married couple can typically expect to pay fewer social security and federal taxes when filing a joint tax return.
  
  

Itemized Deductions

• According to a Forbes article entitled, "The Cost of Being Married Versus Being Single," the lower standard deduction offered to singles means a single person will benefit from itemized deductions at a much lower tax rate than will a married couple. For example, home ownership is one area in which a single person gets a tax advantage over the married couple. The single person will generally benefit more when claiming property taxes, mortgage interest and other common itemized deductions than will a married couple filing jointly.
  
  

Variable Advantages

• Some of the tax advantages associated with being married versus being single may vary from one situation to the next. For example, married couples often begin to think about saving for retirement at a younger age than singles do. Many tax advantages are associated with saving at a younger age, including a reduction in taxable income. However, some singles do choose to save early and may obtain similar benefits. These advantages may differ depending on individual choice. Additionally, married couples do benefit from the higher limitations afforded to them on tax benefits such as retirement savings.
  
  

Considerations

• The tax advantage for one married couple may differ from that of another. For example, a couple in which both partners earn income may benefit from being single for tax purposes while a couple in which only one person works may benefit from getting married. As always, fully evaluate your individual circumstances before determining the best approach for your specific situation.