How will taxpayers be affected by the sunset of marriage penalty relief in the working family tax credit?
Under current law, the income level at which the Minnesota working family tax credit begins to phase out will be $3,120 higher for married couples filing joint returns in tax year 2010 than it will be for other filers. This additional amount matches provisions enacted in EGTRRA and provides some relief for marriage penalties on two-earner households. In 2011, the phaseout threshold for married filers will revert to the level in effect for other filers, and an estimated 39,000 married couples will qualify for smaller working family credits; and the state will pay about $10 million less in credits.
Under current law, the income level at which the Minnesota working family tax credit begins to phase out will be $3,130 higher for married couples filing joint returns in tax year 2010 than it will be for other filers. This additional amount matches provisions enacted in EGTRRA and provides some relief for marriage penalties on two-earner households. In 2011, the phaseout threshold for married filers will revert to the level in effect for other filers, and an estimated 34,000 married couples will qualify for smaller working family credits; and the state will pay about $9 million less in credits.
Related Questions
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