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April is a Taxing Time for Gay/Lesbian Couples

Sunday, April 15th, 2012

We all know the old saying– “Nothing is certain in life but death and taxes.” Yet for same-sex couples, tax time is anything but certain.

You may think that the new Illinois civil union law solves all the joint tax filing confusion for gay couples. The law says “persons entering into a civil union with the obligations, responsibilities, protections, and benefits afforded or recognized by the law of Illinois to spouses.” In short, anyone in a civil union gets the same state benefits as someone who is married. It should be simple, right? Wrong.

Proving the problem with separate and unequal relationship recognition like civil unions, the Illinois Department of Revenue posted a rather surprising reading of the civil union act on its webpage back in June, saying that couples in civil unions “may not file joint Illinois returns” and the new law “did not change the Illinois income tax laws” due to the federal Defense of Marriage Act (DOMA).

Full Story from GoPride

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Tags: civil unions, gay couples, Gay Marriage, lesbian couples, marriage equality, taxes

USA: Tax Tips for Gay/Lesbian Couples

Thursday, March 29th, 2012

Tax season is here and now that multiple states recognize same-sex marriage, tax filing season has become a bit more complicated.

Due to passage in 1996 of the Defense of Marriage Act, the federal government does not recognize the newer state laws regarding same-sex marriages or civil unions. Only marriages between a man and a woman are recognized under federal law. This means that a same-sex couple is prohibited from filing as “Married Filing Joint” or “Married Filing Separate” on their federal tax returns.

The IRS makes this exceedingly clear in the Form 1040 instructions which state: “For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife and the word ‘spouse’ means a person of the opposite sex who is a husband or a wife.”

Full Story from The Washington Blade

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Tags: gay couples, lesbian couples, taxes, united states

Taxes Fraught With Trouble for Newly Married Gay and Lesbian Couples

Wednesday, March 14th, 2012

Newlyweds Ruth Berman and Connie Kurtz are gearing up to file their first tax return as a married couple.

Typically, couples grapple with the financial pros and cons of filing separately or jointly. Though either way, they tell the IRS they are married.

However, for Ruth and Connie, prominent gay activists who were married last summer in New York after the state approved gay marriage, income taxes are far more fraught. The U.S. government does not recognize their marriage. By law they must file their federal income tax returns individually.

Full Story from the Huffington Post

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Tags: gay couples, irs, lesbian couples, marriage equality, taxes

IL: Couples in Civil Unions Face Tax Hassles

Saturday, February 11th, 2012

Illinois same-sex couples in civil unions are discovering an unpleasant quirk of their new status. The state of Illinois will make them do their federal taxes twice. Illinois’ civil union boosts drudgery at tax time, and it probably won’t save same-sex couples any money.

Here’s why: Illinois law requires that same-sex couples in civil unions be treated as if they were married for tax purposes.

The state income tax form requires that they transfer numbers from their federal income tax form. To produce the proper numbers, civil union couples must fill out a federal tax form as either married filing jointly or married filing separately, and submit it with their state forms.

Full Story from STL Today

Click here for gay wedding resources in Illinois.

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Tags: civil unions, gay couples, illinois, taxes

Marriage Equality Bans Cost Gay Couples Up to $6K a Year

Monday, December 26th, 2011

Same-sex spouses are paying as much as $6,000 a year in extra taxes because the federal government doesn’t recognize gay marriage, according to an analysis conducted for CNNMoney by tax specialists.

While marriage provides tax benefits for many heterosexual couples, same-sex families don’t enjoy the same perks because they are not allowed to file their federal returns jointly.

The imbalance persists despite increasing acceptance of gay marriage as a legal right. More than 12 states now grant full or partial marriage rights to same-sex couples, and a recent Gallup poll showed — for the first time — that a majority of Americans favor gay marriage.

Full Story from CNN

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Tags: ban, couples, Gay Marriage, marriage equality, taxes

Tax Hassles For Married Gay Couples

Friday, November 11th, 2011

After 13 years together, Maggy Porter and Arlene Bronfman began to talk last June about marriage when New York State passed its Marriage Equality Act. Until, that is, the New York-based couple visited their accountant.

“What was supposed to be this way of expressing our love was going to seriously confuse our taxes, investments, estate planning, really all our finances,” says Porter, a registered nurse. “Our CPA is great, but even he seems pretty bewildered. We weren’t sure how to proceed.”

In the end, romance won out over finances, and Porter and Bronfman plan to marry in March despite the financial complications and expected tax hassles.

Full Story from Reuters

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Tags: Gay Marriage, marriage equality, taxes

AK: Tax Lawsuit Threatens Marriage Equality Ban

Sunday, October 23rd, 2011

It is a simple case involving property taxes in Anchorage, Alaska, and it is certainly getting Tony Perkin’s panties in a twist. The Alaska Constitution has some pretty strong equal protection guarantees and an amendment that defines marriage as being only between a man and a woman. Still, it was the case of the property tax exemption that could trip this one up.

Gayle Schuh and Julie Schmidt are both in their sixties and separated by about five years. Schmidt is 67, and if the two could be married, they would be entitled to a $150,000 property tax exemption for those who are over the age of 65. Because they are not married, the exemption is only $127,000, or half of what their home is worth. That difference costs them $359.

Well, they challenged this in court, and the court ruled that any laws that benefit married couples discriminate on the basis of sex.

Full Story from Lez Get Real

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Tags: alaska, Gay Marriage, lawsuit, taxes

AK: Tax Law Ruling May Have Implications for Anti Marriage Equality Law

Tuesday, October 18th, 2011

A seemingly insignificant property tax case in Anchorage, Alaska may have a profound effect on one of the techniques used to combat marriage equality. Alaska has a marriage amendment in its Constitution which provides that a marriage can only be between a man and a woman. The Alaska Constitution also has strong equal protection guarantees. The tension between these concepts is played out in the case of Julie Shmidt et.al, v The State of Alaska and Municipality of Anchorage.

The plaintiffs are three same sex couples with similar stories. Here is one. Julie Schmidt was 67 and her partner Gayle Schuh was 62. They owned a home together. The assessed value of the home is $254,200. If they were married they would have been entitled to a $150,000 property tax exemption because Ms. Schmidt is over 65. Since they were not married, the exclusion is limited to $127,100 (half the assessed value). That cost them $359.31.

The case makes an interesting read, although it is on what I call the lawyerly side. The bottom line is that the couples all won including one couple where the partner who was over 65 did not have any ownership at all in the house. The reason they won is what is interesting and might have profound consequences for marriage equality. The Court ruled that because of the marriage amendment, any law that benefits married couples facially discriminates on the basis of sex.

Full Story from Forbes

Click here for gay wedding resources. in Alaska

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Tags: alaska, ban, marriage equality, ruling, taxes

NY: Taxes The Least Romantic Part of Marriage Equality

Saturday, August 6th, 2011

The ugly reality of partial equality is setting in for newly-married couples in New York. They’ve got the girl, but many of the other benefits that come with declaring your love for the government to hear are still miles away. Due to DOMA, married same-sex couples will continue to be treated as single filers by the IRS and will face significant hurdles in the already arduous tax-filing process — even as New York begins to allow married couples to file as such.

Though Obama refuses to back DOMA and has directed federal agencies to extend all possible benefits to same-sex couples, even the HRC admits that the IRS doesn’t have much of a choice — because while DOMA is still in existence, “all possible benefits” just isn’t much.

Though gay couples can file as married in New York, they wil be required to fill out additional sets of forms for federal tax returns. Extra “dummy” copies take time to figure out (consider the tax code) or an extra $300-$400 dollars if you hire and accountant. You’re also essentially lying to the IRS, although that’s what they’re asking you to do.

Full Story from Autostraddle

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Tags: Gay Marriage, new york, taxes

NY: What Marriage Means for Gay Couples’ Taxes

Wednesday, August 3rd, 2011

Now that gay marriage is legal in New York, legally wed couples will be subject to new state tax rules, which affect everything from income and sales taxes to estate planning.

While New York recognized same-sex unions performed elsewhere before the state started issuing marriage licenses of its own last month, that recognition did not extend to tax matters. Now it does.

The new tax rules, in fact, apply to all legally married gay couples who are living in New York, even if they were married outside the state.

Full Story from The New York Times

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Tags: Gay Marriage, new york, taxes