USA: Three Reasons Gays May Hate IRS Equality

Written by scott on September 1st, 2013

IRS_logoAlthough many gay lesbian couples may end up paying less when they start filing jointly with the IRS this next year, others may face the downsides.

Motley Fool reports:

Yet for some same-sex couples, being treated as married for federal tax purposes could actually increase their tax bills. Let’s take a look at some of the negative implications of the new IRS policy from the standpoint of same-sex spouses.

1. The marriage penalty will hit many same-sex spouses, especially those with roughly equal incomes. The IRS ruling will force same-sex spouses to face the same apparent inequities as their married opposite-sex counterparts. Under certain circumstances, federal tax law imposes higher total taxes on married couples than they’d have to pay if they could each file as single individuals. Especially with higher-income couples, threshold limits for higher tax rates often start at far less than double the corresponding limit for single filers, leading to bigger tax bills. In addition, married couples who file separate tax returns often face limitations and restrictions on deductions that single filers don’t.

Hit the link above for the other two reasons.

For me, it’s worth paying a little extra for the right to be treated equally. After all, we always said it was about both the rights and the responsibilities of marriage.

Find more articles and gay wedding resources.

 

1 Comments so far ↓

  1. John Reagan says:

    I’m going to bet that most gay couples will be pleased to pay taxes as a ‘cost’ of being treated equally. And, aside from the potential for adverse tax treatment, the opportunity of gaining rights to visit your partner in an ICU, survivor’s benefits, family medical plans and all the other trappings normal married couples enjoy would far outweigh what really only hits upper income couples anyway.

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