income splitting

income splitting definition - business

income splitting

  1. Married couples filing a joint return with wide brackets that assume assets and income are split between the spouses. The wide tax brackets applicable to joint returns were designed to mitigate the effects of a progressive tax on married couples.
  2. See income shifting.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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