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Jordan Stead / Reuters
Same-sex couples take their vows during a group wedding Dec. 9 at the First Baptist Church in Seattle.
Same-sex couples in Washington state rushed giddily to the courthouse earlier this month after Washington became one of three states where voters approved laws giving them the legal right to marry.
Those newlyweds will probably be less excited the first time they get to file their tax returns together.
The gap between state laws that recognize same-sex marriage, and federal laws that don’t, makes tax season complicated at best, and costly at worst, for same-sex spouses.
“It’s certainly a big headache for people. I’ve literally seen them reduced to tears,” said M.V. Lee Badgett, research director of the Williams Institute for Sexual Orientation Law and Public Policy at the University of California, Los Angeles.
The Supreme Court’s decision to hear cases related to same-sex marriage could clarify the confusion if the court ends up striking down the Defense of Marriage Act, a national law that defines marriage as between a man and a woman.
That could clear the way for the federal government to recognize same-sex marriages in the states where it is legal: Washington, Maryland, Maine, Massachusetts, Connecticut, Iowa, Vermont, New Hampshire, New York and the District of Columbia.
The recognition would mean that same-sex couples could file a joint tax return and be eligible for tax breaks and other government benefits, such as spousal Social Security benefits, that heterosexual spouses currently have.
But a decision on those Supreme Court cases is not expected until June. And as it stands now, filing taxes is a lot more complicated for same-sex couples because they are considered married by their state government and not married by the federal government.
“It’s very laborious,” said Judi O’Kelley, deputy director of development for Lambda Legal, which does advocacy work and provides legal guidance for lesbians, gay men, bisexuals and transgender people.
To file state and federal income tax returns, experts say same-sex couples must first fill out a mock federal tax form as a married couple, which they use as the basis to file their state tax returns. Then, they must go back and file a second set of federal tax returns as if they are both single, because the federal government does not recognize their union.
In community-property states such as Washington and California, there is one more hurdle for the individual returns. Couples have to essentially split their wages down the middle, said Marci Flanery, a CPA who practices in Seattle. So, if one spouse makes $100,000 and another spouse make $20,000, each return would end up showing income of $60,000.
That’s because even though the marriage isn’t recognized, their assets are considered shared property.
There are other tax issues to consider. Same-sex partners who get health benefits from their spouse’s employer are taxed on those benefits, while heterosexual married couples are not.
Couples also have to figure out how to allocate deductions, and many worry about the tax implications should one same-sex spouse give the other money, or leave the other an inheritance.
“There are lots of rules in the Internal Revenue Code that depend on marriage,” said Patricia Cain, a professor of law at Santa Clara University and an expert on these issues.
Experts say that many same-sex couples probably don’t realize the tax implications when they get married, and may file incorrectly because they don’t know the rules.
Still, some are clearly thinking about money in addition to love as they prepare to get married.
O’Kelley said about 500 people showed up for a forum on legal issues related to same-sex marriage, held in Washington state just days before those unions became legal.
Flanery said she’s had a steady stream of potential accounting clients coming in to talk about the tax implications of a potential same-sex union, and especially the income-sharing provision.
“I don’t see that they’re not getting married because of this, but they do want to know about it,” she said.
The tax issues may be a headache, but they aren’t always a financial burden. For couples who both earn a higher salary, the current system can be a good financial deal.
That’s because high-earning couples are sometimes subject to a so-called marriage penalty in which their joint filing status puts them at a higher tax rate than if they were filing individually. By splitting their income, they can each enjoy a lower tax rate.
Nevertheless, even some advocates who benefit financially from the current situation say they’d be willing to pay more taxes to have the federal government recognize their marriage, and to be eligible for other federal safeguards.
“I don’t want to pay it, that’s true, but we’re not going to get divorced over it,” said Cain.
Related:
Advocates on both sides hope for Supreme Court clarity on same-sex marriage
Leave a Comment:
snoop marky mark and so journ ; your statements are so true, our entire planet needs too think this way as this homo stuff is just wrong and a crime against nature.
Too bad. Good luck trying to convince me.
MSN stands for MORE Sh*ty NEWS.....msn agenda push homosexuality.
that photo is offensive...Just plain STUPID.
A photo of a marriage is offensive?.... how?
who fing cares
One thing this article doesn't mention - it is impossible for a married or domestic partnered gay couple to file their state taxes correctly if one covers the other with health insurance. This is because the "imputed income" that results from the insurance must be subtracted from the covering spouse's income for the purposes of the state income taxes, and the after-tax portion of the premium (that portion that covers the spouse) should be calculated as pre-tax for the purposes of the state return. Your employer will not provide you with a correct W-2 for the state. Which means, I not only pay a federal penalty, I pay a huge state tax penalty, being taxed on imputed income and not deducting all of the health insurance premium from my income.
Why don't we just set extra taxes on people caught cheating on their spouses instead of taxing those who are just wanting the right to live their lives as every other American does? Without prejudice.
Should not the liars and cheaters face charges for their delinquent behaviour, rather than point fingers at people who want the same Constitutional and Civil Rights as every other Amertican?
If anyone thinks that they are committing some crime in the eyes of the Lord....Why does anyone consider it their right to judge?
Flannery CPA the article specifically mentions Washington State and names a Seattle CPA. It's still a poorly written and confusing article. It might be harder to understand than the tax code. The campaign in Washington focused on love to win approval. I think it was always about the benefits. Why not be honest about that. Why would we need the governments approval (marriage certificate) to love someone? By the way my girlfriend would lose some federal benefits if she remarried. Nobody mentioned that glitch.
Per God, marriage is the union of a man and a woman. Anything else is a perversion and if you want to be perverted then pay for your perversion.
Whose God. If you mean the Christian God say so. However don't forget that the Christians are a minority in the world. The Buddhist, Hindus, Taoist and hundreds of other religions far out number the Christians. The first three predate Christianity by up to a thousand years.
Unfortunately for christo-bigots like you, Les, God and the bible do not make our laws; we are and have always been a secular nation
WRONG, Kimber. Many civilizations existed before there were any organized religions.
EPIC FAIL.
No sky fairies or imaginary friends were involved in my marriage.
The tax breaks enjoyed by married heterosexual(I can't believe that we have come to a point of immorality in the country where I need to actually define a marriage) couples are there as a reward for forming the family unit and taking on the responsibility of creating and raising the next generation of citizens. Those are EARNED every day with every runny nose, time out, help with homework, and teaching the lessons of morality to our youth. Same sex couples simply do not, under any circumstances, have the ability to reproduce on their own. They REQUIRE a surrogate. Now the liberals will say "what about married hetero couples who don't have kids?". To that I answer that they don't get all the same benefits that those of us with kids do. They do get some of them but, when you get married, it is assumed by the gov't that you will at some point have kids. It is more cost effective for the gov't to assume that for every couple than to try to deal with the kids vs. no kids marriages separately. Not only that but the stability implied with marriage is another reason to reward people. That is one that same sex couples can say they have too but it is offset by the harm they do society by engaging in an unnatural practice.
Next, for all of you who claim that homosexuals don't try to convert heterosexuals I can call you out on that great big lie because, when I was younger and more liberal, many of my gay friends tried to do just that. I had to end one friendship simply because the guy started getting way too aggressive with his insistence that I "would like it if I just tried it one time". He badgered me non stop especially when he had a few drinks. I nearly had to get a restraining order on him so don't tell me that homosexuals don't try to convert heterosexuals to their lifestyle because I have a great deal of personal experience to show you how wrong you are.
" it is assumed by the gov't that you will at some point have kids". Would you like to site some sources for this statement? Millions of couples don't want to have kids, can't have kids or are too old to have kids. "Engage in unnatural practice". Millions of hetero male and female couples also engage in anal and oral sex. Shocking isn't it?
I forgot to address your last paragraph. You site an experience with one gay guy and generalize it to everyone. Have you ever been to a party and had a women make a pass at you for sex. Did you turn her down? Have you ever asked a women for oral sex and she said that "I don't do that?" Happens every day. But let a man make a pass at you and you freak out. Just say no, I don't go that way. Find some self confidence and stop blaming your gay friends.
What does procreation have to do with marriage? Name ONE state that requires proof of either the intent or ability to procreate in order to obtain a marriage license.
BTW, gays CAN and DO procreate, and they have families (with all the attendant runny noses, time outs, homework help, and lessons in morality) in other ways, too, just like infertile heterosexuals do.
The fact that you were hit on by homosexuals does not mean they were trying to "recruit" you -- they probably sensed how far in the closet you are, and were urging you to come out.
Great response. Got my laugh for the evening from your last sentence.
And of course you cretins have to come out and accuse me of being a closet homosexual. No, I am not. My experience with the gay community was that nearly every gay man I met made a pass at me and SEVERAL kept trying to get me into the lifestyle very aggressively. If you had actually read the story you would have noticed that I almost had to get a restraining order against the one guy because he was so aggressive. I ended up having to move out of state to get away from the homosexual community. Many of them do try to convert you. I imagine that the both of you are like that...gay, proud of it, and wanting every guy and girl out there to be just like you. Get lost you pervs.
Hi adc, looks like we struck a nerve. You didn't answer the main part of my post.
" it is assumed by the gov't that you will at some point have kids". Would you like to site some sources for this statement? Millions of couples don't want to have kids, can't have kids or are too old to have kids. "Engage in unnatural practice". Millions of hetero male and female couples also engage in anal and oral sex. Shocking isn't it?
According to scientific research, you are quite likely in the closet:
http://www.philosophy-religion.org/handouts/homophobia.htm
http://www.scientificamerican.com/article.cfm?id=homophobes-might-be-hidden-homosexuals
You still have not answered the question regarding what procreation has to do with marriage.
BTW, I'm a straight, married woman who supports equality, but how like an ignorant homophobe to ASSume that I'm gay because I support their cause.
Sounds fair to me.
Well, you win some and you lose some. So now heading into the Federal Courts are going to be challenges, guess what, if you're 30 years old you'll probably never live to see the end of this one. One has to understand that State's rights and Federal laws and not necessarily intertwoven.
We all know that Federal tax laws are a b%$ch. We have tax lawyers who can't even explain it. Now head down to WalMart and have that guy do your taxes, good luck.
Some states are friendlier than others, but you better know where you're parked. The Feds aren't about to bend their rules and start dividing Federal tax law into 50 differeThe nt pieces of the pie. This is a no brainer. Why do I envision Lemmings leaping off the cliff?
So you think this is complex, wait until your employers start trying to figure it out. Look, I respect each and every individual for wanting things in their lives, but the fact is our individual lives are governed by many different rules and regulations. There is a thing called "States Rights" and we all (hopefully) respect that. However, States Rights will never supercede those of the Federal Government. We fought a war over that. The war that I refer to had little to do with SLAVERY, it had everything to do with States Rights and the domain of our Federal Government.
So, in the end, if Gays, Lesbians, Homosexuals and Transgender people can't enlist the backing of the Federal Government you're shooting blanks in the sky.
Simple. File as a married couple.
Good thought, but there is SSN's that enter into the equation. John and George? I'm not a tax guru but I think I'd have to look at that one.
Homo sexuals should have all the rights normal people have, but just dont call it Marriage, call it civil union, and ban homosexual adoption. Kids have a right to a mom and a dad.
They should get the same tax breaks married people do.
Even single parents date, and strive to find a spouse. Homo sexuals would actually try and create a "family" without a mom! that it cruel! every little boy deserves a mommy! every little girl needs a mom. Imagine a little girl having to learn about her period from a man! Imagine a little boy falls off his bike, and comes running home crying, and his dad tries to pull him close, to his hairy chest, yuck!
Psychiatrists agree that the child bonds with the parent of the opposite sex at age 4.
Kids need to see a man and woman relate, so that when they grow up, they can marry.
I didn't realize that life revolved around marriage.
Your Taxes,your legal bills and your lifestyle is about to cost you more and draw all kinds of attention...why ..becuase you made a big fuss over what you wanted and didn't have but you weren't thinking about what you had and now the cost is being added up!
Welcome to the mainstream and hope you enjoy all it cost you, ha ha and you did it to yourselves!
Just to weight in...I believe homosexuality is a genetic defect...it can't be normal right? if it were normal to be homosexual, eventually we wouldn't exist. Right?
I find it humorous that homosexual's want fair taxes...guess what, so do the 1% that Obama and the libs want to pay a "little more".
Yes it is genetic and no it is not abnormal. Homosexual behavior has been observed in hundreds of different species of animals. Just because it is not the majority way to live does not mean that it isn't normal.
John Kaye >>>>> You don't know if homosexuality is normal or not, nor do I, nor does anyone else. As for homosexuality in animals, well yeah, sure. But most animal homosexuality that has been observed took place in zoos. The second most common location has been farms. Other fairly common locations are laboratories. All three---but, especially zoos, are highly unnatural---in spades--- environments. The real surprise would be if all animals in these situations were normal.
Then why have all of the major medical and scientific associations come out unequivocally with the information that it is as normal as heterosexuality, just not as common?
WRONG. In order to observe animals' natural behavior, many studies of their sexual behavior has been done in their natural habitats, not in artificial conditions.
DYFR.
Homo sexuals should have all the rights normal people have, but just dont call it Marriage, call it civil union, and ban homosexual adoption. Kids have a right to a mom and a dad.
They should get the same tax breaks married people do.
Even single parents date, and strive to find a spouse. Homo sexuals would actually try and create a "family" without a mom! that it cruel! every little boy deserves a mommy! every little girl needs a mom. Imagine a little girl having to learn about her period from a man! Imagine a little boy falls off his bike, and comes running home crying, and his dad tries to pull him close, to his hairy chest, yuck!
Psychiatrists agree that the child bonds with the parent of the opposite sex at age 4.
Kids need to see a man and woman relate, so that when they grow up, they can marry.
Tim, While I disagree with you I thank you for your well reasoned and intelligent post without the usual name calling and hysteria. For someone else who may be on the fence I can see your reply converting them to your point of view.
Tim, you don't own the word "marriage".
Studies have shown that children with same-sex parents are just as well-adjusted as those who are raised by opposite-sex parents.
If they get the same tax breaks,then they are entitled to all the entitlements available from the federal and state governemnts.I wish someone would do a study and find out what percentage of homosexuals currently are not working and on psychiatric disability.I bet it is high but the payments are low.I don't believe in a large percentage of cases with homosexuals,there is any adoration or love.There may be sexual gratification that is misjudged as love but not love.If being married is all they want and the state they live in doesn't sanction marriage between two people of the same sex,they can do what tens of thousands of heterosexual couples do every year,go to another state that sanctions such a union and get married.That's not what they want,they want MONEY!They can hardly wait until,if it was to pass,to go back and file a lawsuit agianst someone precieved as dissing them.
Yes, same sex couples can fall in love, have a health monogamous sexual relationship just like hetero couples. Relationships of 30 years or more are not unusual in the couples getting married.
DOMA will be history soon and then laws prohibiting same sex marriage will be done away with. Then the country will have true marriage equality.
Don't bet on either. It's mostly the old fossils and Republicans that oppose gay marriage. People 30 and under overwhelmingly support it. It is inevitable that gay marriage will be the law of the land as the old fossils die off,
Homosexuals want the federal government to recognize their rights as being the same as heterosexual marriages.The majority of states have voted on this issuse and have agreed no to extend the term"marriage" to same sex partners.So the GLBT lobbiest are trying their hardest(no pun meant) to have the DOMA revisited.I don't think there are enough votes in Congress to overturn it.The Supremes will issue a decision on the issuse in June but unlike what most homosexuals think,the decision will be based on states vs. federal rights.The states who have voted,along with DOMA have a fairly substanial case.They are,in fact, supported by the federal law.I think,to the disappointment of the GLBT folk,the state rights will be upheld.Of course,that will result in a bunch of angry queens stomping around the City for a while burning a few trashcans and homeless people.It's not a 14th amendment issue!One last thing,did you know it has been two whole days since NBC published an article about homosexuals?That is their limit.After that,I understand,the pressroom is like a daycare center when all the mothers show up at one time,all on their period!Boy,that would not b fun!
WRONG. If that were true, then explain why you bigots keep LOSING in the courts.
Your reply was excellent up to the angry queens comment. It reduces the strength of your argument. While I am in favor of gay marriage I support any reply that disagrees in a respectful way. As I said above pols show that people under age 30 overwhelmingly support gay marriage. It is inevitable that as they get older gay equality will become the law of the land.
Erin.About your comments above about children with homosexual couples being the same as children with heterosexual parents is untrue.I can tell you from experiencing and seeing several homosexual couples with kids,they are not the same.There is a feeling of shame but they know its better than before so they just shut up.I was in a homosexual couples house and they had a 7' steel,anotomically correct piece of a man.There were three kids in that house and the parents could not figure out why everytime someone came into the place,the kids shut up and went outside.The statue was in plan view when you got inside.When I suggested the thing be put in thier bedroom,out of site of the kids,they did it.The kids changed.Now,you can't tell me,those kids were not ashamed of their parents and that took away their self confidence.I know the kids were given everything and well cared for but i'm also sure there were other things never seen that cause the kids problems.All of the kids were special needs kids, so knowing how messed up they were before would be neccessary to see how messed up they were when I was there.I can say,in defense of the parents,I deeply admired the fact,they were willing to give so much attention and care to kids no one else would want.Very dedicated and worked hard at being good parents.I don't think they knew what to expect and if they had,they never would have crossed that line.I know,being honest,I would not be able to do what they were doing.Oh.they didn't just take one or two children,they took four kids of special needs.Very admirable!I've always had a special place in my heart for those two guys!
So your "vast scientific research" disproves reputable, unbiased, peer-reviewed studies? I don't think so:
American Psychological Association, American Psychiatric Association, National Association of Social Workers, American Academy of Pediatrics, 2006
So far you bigots have lost every single time in court. Every. Single. Time.
I suggest you get used to it.
In community-property states such as Washington and California, there is one more hurdle for the individual returns. Couples have to essentially split their wages down the middle, said Marci Flanery, a CPA who practices in Seattle. So, if one spouse makes $100,000 and another spouse make $20,000, each return would end up showing income of $60,000.
Umm WTH? Someone who makes 20k is expected to pay taxes on a 60k income!? That is nonsensical at best, but more likely outright theft. I would tell the government i pay on what i actually earn or pay nothing.
I can tell you about California,the income tax laws will change next year and when it is done,they won't care if you are cohabitating with someone of the same sex or a goat,you are going to pay more!
Come on Billy Bob!! We kin't let dem fruits get preferenteel tax brakes! But Sheet! Mayabe we can pin this to some a dem new gun laws where we kin "carry" a surface to air missle around in the back a da pickup. Damn Tootin!
JohnKay! Before I posted that comment,I was called a bigot and homphobe on this thread,twice!What goes around,comes around!Point taken.But you still have vitriol on these threads that are not spewed by your opposition but by your supporters!
I didn't, I believe is civil discussion. Go back and read my first post. I did laugh at one comment. If that offended you I'm sorry,
The combat with you,JohnKay,has been pleasurable.I like it when replies without name calling.Sorry about the "queen" thing but I know any number of homosexuals who refer to each other using that term.I guess some don't really fit that name.I'll do my best to eliminate it from my vocabulary!
mas098, My face is red. I lost track of the thread and just replied to a much earlier post, not the one that I left for you. I do try to civilly reply to the name callers but frequently it doesn't do any good. The best thing for the name callers and those who reply with vitriol is "Do not feed the trolls" (-:
Now I'll admit to real feelings that are not often expressed in the black and white world of for and against. I am 63 years old and intellectually support gay rights and gay marriage 100%. But I am also human and have a visceral response when I see two men kissing. My stomach goes eew. On a visceral level I am uncomfortable with gay adoption but accept it intellectually. I don't believe that I am the only one that feels this way but few will admit it.
You've amply demomstrated that you're a bigot, in this thread and many others.
A prime example of my non-homophobic, non-religious based stance against the fight for same sex marriage... wait... I'm against anyone fighting for special decision based rights. ANYONE can call themselves married, live a married lifestyle - sleep together, live together, raise children together, etc. But that isn't what gays are fighting for - they are fighting for those tax breaks, and bonuses afforded to people for no other reason than their decision, and it infringes on the rights of others... as seen here. WAIT...
Now, same-sex couples are going to be screaming how federal laws are unfair, yet NOTHING has changed on either side, other than a little piece of paper that the couple now holds.
How do you think that unmarried people, who have decided to remain unmarried, feel about that? One of the reasons I have remained unmarried, don't have children, and not bought my own home, is because I am responsible enough to know the finances of it. However, a simple piece of paper is allowing others to bypass fiscal responsibility and gives them bonuses based solely on that decision.
Why should my tax rate be higher? Why should I pay more for education taxes? Why should my insurance rates be higher?
It's not that I am against gay marriage (in this sense) over something as ignorant as homophobia or religious belief, I am against any group that pushes for something that singles out people based on a decision... just as much as THEY seem to want to portray their own belief in that same mentality.
Supporting gay marriage, in my mind, is like supporting the right for freed slaves to own their own slaves. It's ignorant.
Smoking causes lung cancer - medical fact. What's the risk? 60% to age 70? Something like that. Homosexual sex causes HIV AIDS - medical fact. What's the risk? 60% or something like that over a number of years. We ban cigarette smoking in public buildings and hotels. We tax cigarettes heavily. We print scary warnings on cigarette packs. What should we do about homosexual sex? Ban it in public places, hotel rooms. Tax homosexuals - cigarettes cost a few pennies to make and a few dollars to buy with the taxes. Homosexual couples should be taxed at 75% rate. I ain't paying for their chosen disease; they should pay. Maybe homosexuals should have a forehead tattoo: "HIV AIDS ;-)"
Hey Rober...
Nobody asked for YOUR opinion!
LOL in WHAT medical journal?
It's a sick idea but i almost NEED to know more about Rober(t). This person must have other really entertaining ideas about a wide range of subjects that can only be explained in terms of his own personal and unique human(maybe) experience!
Why not have your male (gay) partner dress up like a woman, or your lesbian partner dress like a man, and go to the IRS in person.
Let THEM figure it out...if they cannot, then why in the hell is it YOUR problem?
FLAT TAX.......FLAT TAX........on any man, woman, boy, girl who works. No exceptions. No exemptions. Black, white; rich, poor; above the tracks, below the tracks.......no exceptions. No exemptions. Hetro, homo, bi, a or any other kind of "sexual." Tall, short, fat, or thin. Flat tax. no exceptions. No exemptions. Everyone treated equally. Make it easy in April. Cut out millions of dollars wasted on the IRS annually.
That would be too easy an make sense. People wouldn't have a reason to complain plus what would all those working at the IRS do?