Gay and Married? Watch out at tax Time

[kweerwolf]

This year, as tax day approaches on April 17, tax experts say even legally married gay couples are inviting the wrath of the IRS by filing their taxes jointly as a married couple – particularly if the status means they will end up paying less in taxes to the government.

Tax law allows heterosexual couples who are married to divide their incomes when they file jointly, which typically results in a lower tax rate.

Then what should gay couples do? Better to file as singles, say tax preparers, or to calculate their taxes as married filing separately, then submit the return that forces them to pay the most.

"Even if you're wrong in the end, you don't face the consequence of underpaying," Attorney Jamie Pedersen, told the Seattle Times. "You're not in the position of owing back taxes, interest and penalties, said the a Seattle lawyer who sits on the board of Lambda Legal, the national legal-advocacy group.

http://www.gfn.com/channelArticle.cfm?channelDesRecordID=177

[Warpy]

1. Most will have the best of both worlds, being legally married in

one or more states while being able to file as two singles on their Fed taxes since the Fed is being silly about recognizing their marriages.

Personally, I'd be tempted to file which ever way would cost me more, since the IRS simply hasn't decided whether or not to follow the constitution as it stands now and recognize gay marriages on a state by state basis. They are likely to be humorless when it comes to couples who paid less, no matter which way they filed, when this whole business finally shakes out.

It's just like the Jim Crow days in a lot of ways, although they did recognize mixed marriages in NYC but didn't recognize them if the folks moved back to Alabama.

[TaleWgnDg]

2. Okay. This may be a legal minefield for some . . . and I will begin by

.

Okay. This may be a legal minefield for some . . . and I will begin by stating as a lawyer I cannot, and will not, give legal advice on a bulletin/message board . . . nor can I, or will I, legally recommend another website for such legal advice.

All that being said, I strongly urge any same-sex married couple -- no matter where the marriage occurred -- to seek the legal advice of their own lawyer who is competent in this area of gay rights, gay marriage, and state/federal taxes. Here's the Gay & Lesbian Advocates & Defenders (G.L.A.D) take on this issue (G.L.A.D. is the non-profit law firm/legal advocacy GLBT rights group that represented the same-sex married couples in the Massachusetts Goodridge case and in many other cases):

How to deal with federal and state income taxes is one of the areas of greatest legal uncertainty. It is made particularly complicated by the possibility that your state may respect your marriage, but the federal government will not. Also, many states require that a person use the same marital status classification for state income taxes as for federal income taxes. Further, single people and married couples are often subject to different tax penalties, so incorrectly designating one’s status may result in a person overpaying his or her taxes, or, more dangerously, underpaying his or her taxes, which may trigger penalties and interest payments. These factors combine to put married same-sex couples in a legal quandary. Without giving legal advice, and as a general matter, here are some thoughts to date. There is no substitute for contacting your own attorney or tax professional for assistance specific to your situation.

. . . read the rest at http://www.glad.org/rights/taxes_for_married_couples.html

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