In tax terminology, the phrase “tax benefit rule” refers to whether or not a refund or recovery received in a future year is taxable. For example, whether or not a state income tax refund is taxable on your federal return depends on the “tax benefit rule.”
Let’s look at things that could be considered “hidden” marriage penalties.
The tax reform of 1986 eliminated the marriage penalty at the lower income levels. The marriage penalty did still exist, but only at higher income levels.