Misconceptions

• Many people are under the impression that filing taxes as a married person is more costly than filing them single. However, according to Liz Weston of MSN Money, this so-called "marriage penalty" is not usually the case. Although a 2001 change reduced penalties for married couples filing joint returns, the Congressional Budget Office noted that the majority of people were saving money on their taxes even in 1996. That year, 51 percent of married couples actually got a bonus for being married -- they saved an average of $1,300.
  
  

2001 Tax Law Changes

• According to Weston, the 2001 tax law changes got rid of the marriage penalty for most people. The changes made the standard deduction for married couples twice that of single couples. They also increased the cutoff for the 15 percent tax bracket to $68,000, so double-income families won't be as likely to pay higher taxes when their incomes are figured together. However, these benefits were set to expire in 2011 unless Congress renews them.
  
  

Income Differences

• Marriage benefits are greatest if one spouse makes much more income than the other. In this case, the two combined incomes won't be enough to push the couple into the next tax bracket, but they can still take the larger deduction. However, couples making about the same amount, and those who are wealthy, may suffer disadvantages when filing joint returns. According to Weston, the penalties also greatly affect the working poor who earn small but generally equal incomes.
  
  

Estate Tax

• Estate tax requires an inheritance to be taxed. However, no estate tax applies when one spouse leaves money to another. For this reason, married people with two incomes can have the advantage of providing for their families' futures without dealing with tax issues, as money left to a spouse is not subject to this tax.