How Do Gender, Race, and Earnings Affect the EITC Marriage Penalty/Bonus?

J. Sebastian Leguizamon (), Susane Leguizamon () and James Alm ()
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J. Sebastian Leguizamon: Western Kentucky University
Susane Leguizamon: Western Kentucky University

No 2507, Working Papers from Tulane University, Department of Economics

Abstract: In this paper, we quantify the ways by which gender, race, and earnings differentials affect the magnitude of the "marriage penalty" or "marriage bonus" in the Earned Income Tax Credit (EITC) using individual micro-level data from the Current Population Survey from 2010 to 2018. Our results show that on average Black couples experience a larger EITC marriage penalty (or a smaller EITC marriage bonus) than white couples. This differential is due mainly to gender differences across race in household income splits, in dependents, and in earnings levels. It is neither surprising nor accidental that these three factors are also the main determinants of the EITC benefit itself.

Keywords: EITC; Marriage; taxable unit; marriage penalty and bonus; race (search for similar items in EconPapers)
JEL-codes: H24 J12 J16 (search for similar items in EconPapers)
Date: 2025-11
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