(Closed) Taxes and gay marriage.

posted 5 years ago in LGBTQ
Post # 3
Member
1186 posts
Bumble bee
  • Wedding: April 2012

Straight couple here.  We pay MORE federal tax as a married couple filing jointly than if we were an unmarried cohabitating couple.  It’s called the marriage penalty and it happens when both are employed without dependant children.  Feel better yet?  😉

Post # 4
Member
21 posts
Newbee
  • Wedding: July 2012 - Boulevard Brewery

So with taxes when one person in the couple earns more than the other there is often a bit of a tax advantage, when both people earn similarly or above a certain threshold then there can be a penalty… The other benefit for married couples comes with deductions, as a gay couple (with doma in place) if you have kids and/or a house you have to jockey the deductions around.  It actually gets more frustrating when your relationship is legally recognized by one government but not the other… because you have to prepare your taxes in 2 different ways.  THIS is why the DOMA decision is so important… 

Honestly tax season is when I am most frustrated because we pay more for our accountant, one of us pays more in taxes because often splitting deductions does not make the most fiscal sense (plus, if one person receives health benefits from their partner that has to be added to their income)… Hoping and praying that DOMA is struck down this summer, we would actually benefit from the “marriage penalty” situation this year our accountant recommended that we actually file an extension (granted this is only valid if your state legally recognizes your relationship either as a domestic partnership or as a marriage)…. frustrating as hell… it is what it is until the Supreme Court makes a decision…

Post # 5
Member
3141 posts
Sugar bee
  • Wedding: September 2012

We live in Canada and this is out first year filing taxes together as a married couple. We got slammed!!! Well my wife did with the higher earnings, originally was getting a decent return only to have the majority of it disappear $2000+ once she entered my information. WTH !!! I thought we were supposed to have tax breaks as well. hope that helps a bit, even if I believe you should be able to marry legally 

Post # 6
Member
8163 posts
Bumble Beekeeper
  • Wedding: August 2012

We got back $1000 less than when we were single.

Post # 7
Member
2363 posts
Buzzing bee
  • Wedding: October 2012

@moonadea:  DOMA actually reduced our federal income tax.  We both work and earn about the same amount.

 

But I still can’t wait for SCOTUS to strike down Section 3 of DOMA.

Post # 8
Member
119 posts
Blushing bee
  • Wedding: November 2012

Yep. This year my wife and I only had a difference of $39 between filing separately or if we had been able to file jointly so we didn’t file a protective claim. Seemed like more of a pain in the a$$ than just letting Uncle Sam take it. Most of our friends who are married with a same-sex partners file claims, though, since it can be a VAST difference. We’ll see what happens with DOMA.

FYI: A protective claim lets the IRS know that there’s litigation going on that affects your tax return and if it passes in your favor (in this case, DOMA being overturned) you will want the $$$ that you previously weren’t able to claim on your taxes. I think a protective claim lasts for 3? years? Don’t quote me. 

Post # 9
Member
119 posts
Blushing bee
  • Wedding: November 2012

Just wanted to post a (semi-)happy update for anyone reading this after September 2013. With the overturn of DOMA, the IRS has ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.

My family can be the example. My wife and I were married on November 3, 2012 in Washington, DC.

We live in MD, where gay marriage is legal. We will file as married for 2013 both on our federal and state tax returns. (We’ll also file an amended return for 2012 in order to get our $39.)

If we lived in VA, where gay marriage is currently illegal, we’d file as married on our federal return but then need to file as single on our state forms. 

More info can be found here: http://www.treasury.gov/press-center/press-releases/Pages/jl2153.aspx

Post # 10
Member
1079 posts
Bumble bee
  • Wedding: August 2014

@moonadea:  You could move to Canada, I remember when they 1st made it legal here i was in highschool i was like 15 and about a dozen couples would come up to the beach where i live (i live right by the boarder) and get married and ask random ppl to sign there papers as witness lol 😛 i prob witnessed so many it’s not even funny i think its wonderful and totally unfair that you can not in texas we need things to be = for everyone 

Post # 11
Member
1340 posts
Bumble bee
  • Wedding: November 2012

@MrsMayaBee:  How are you able to amend your 2012 return when same-sex marriage didn’t become legal in MD until January 1, 2013?

Post # 12
Member
119 posts
Blushing bee
  • Wedding: November 2012

@Mrs Darling: Good catch, I wasn’t clear. We will file an amended FEDERAL return. Ironically/luckily for us, there was no difference in our single vs. joint returns for MD. 

Post # 13
Member
1671 posts
Bumble bee
  • Wedding: October 2014 - Church

@moonadea:  Where I am (whether you are cohabitating or married couple – gay or not, doesn’t matter here) cohabitating and married couples pay the same taxes and do not put in together. In fact, it is a penalty because the amount actually makes your amount go up oddly. The only benefit is you can transfer some tax credits to the higher income earner (ie. if one is in school or made too little to benefit from the credits – like bus passes or RRSP contributions). I think it depends on your personal financial situation.

Post # 14
Member
1340 posts
Bumble bee
  • Wedding: November 2012

@MrsMayaBee:  I just saw your wedding date, so I take it you got married in DC in 2012? That makes way more sense. Mrs. Darling and I got legally married at the stroke of midnight in MD–so we can’t amend our taxes, but this year looks promising. We just did all of the name change paperwork (tax forms) for work this week and that was kind of exciting.

Post # 15
Member
2450 posts
Buzzing bee
  • Wedding: October 2012

When we were unmarried, we got back twice as much as we do now as a married couple. That surprise hit us like a bag of bricks…

Post # 16
Member
119 posts
Blushing bee
  • Wedding: November 2012

@Mrs Darling:  Yup, my wife and I were married (also at midnight!) on November 3, 2012 in DC. Huzzah for the name change!! I am waiting for my changed passport to come in the mail. Let’s just ignore that everything else was changed in February… We are heading to Cancun for my BIL’s wedding in November and figured it was time to take care of business. 🙂

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