Tax Information for Married Same-Sex Couples
As tax season approaches, many same-sex couples who have married or entered into a domestic partnership face new challenges and headaches with their filings. This is because while some states permit these couples to file a joint state tax return, The Federal Defense of Marriage Act ("DOMA"), which defines marriage as between a man and a woman, prohibits the IRS from recognizing your union. As a result, couples find they often have to prepare two completely different filings -- one joint and one single -- to complete their taxes.
Further, many financial decisions married couples take for granted wind up creating tax consequences for same-sex couples. For instance, employee health insurance benefits extended to a domestic partner must be claimed by that partner as income even though heterosexual married couples have this income exempted. Keep in mind that many software packages and online tax preparers are not properly equipped to handle this unique problems. Partners in this situation and especially those with particularly complex filings should consult a tax professional with experience with same-sex clients.
Lambda Legal also recommends including a disclosure statement [pdf] in your federal returns to indicate your partnered status despite filing as a single individual. This is because your tax status as "single" may be used against you in the future, even in non-tax settings. A disclosure statement identifying that you are married or partnered and are filing "single" only because of DOMA can help to protect you.
Visit Lambda Legal for more tax considerations for same-sex couples. Remember, though, that generic advice is no substitute for the assistance of an experienced professional. Tax law is complex and changes from year to year, and every individual and couple is in a unique situation.
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