Abstract
Couples can face higher taxes when filing as married rather than unmarried. These marriage penalties may motivate newlyweds to delay reporting their marriage on U.S. tax returns. Linking Minnesota marriage records to federal tax returns, we show that marriage penalties are correlated with delayed marriage reporting. Over 2 % of newlyweds misreport their marital status. Misreporting rates increase to 14 % when marriage penalties reach $8000. Misreporting and large marriage penalties are more prevalent among similar-earning couples and EITC claimants. Misreporting couples’ behavior appears responsive to incentive changes, often correcting their filing status when marriage penalties become bonuses.