Filing Taxes as a Same-Sex Married Couple

MONEY MATTERS

BY GARY TANNER

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iling taxes can be a daunting task for anyone. There are so many things to consider: What deductions should I take, how should I fi le, etc.? The list goes on and on, and without the proper guidance, you could be cheating yourself. This is especially true for same-sex couples. The U.S. Department of the Treasury and the Internal Revenue Service ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.

Legalizing same-sex marriage had some major practical implications for same-sex couples. Domestic partnerships and civil unions, although counted as legal relationships that are recognized on the state level, are not marriages and don’t qualify you to fi le federal taxes as a married couple. You can only fi le using the marriage designation if you are legally married.

For most married same-sex couples, they are likely to see a lower tax bill as a result for being able to fi le as married. However, those on the extreme ends of the income spectrum should know that this may not be true for them. Their tax liability may go up. It is important to consult an experienced tax preparer who understands the laws and can guide you through the process. For example, for couples who both have high-income earnings, they may see their tax bill increase if they fi le jointly. If so, they should consider fi ling separately. Married couples can fi le federal taxes in two ways – married fi ling jointly or married fi ling separately.

Couples who plan on raising a child together have extra incentive to fi le a joint return. For example, it’s the only way they can claim a credit or an exclusion on expenses incurred when adopting a child together. Depending on the couple’s income, they may be able to claim a credit up to 35 percent of their qualifying expenditures.

Married same-sex couples now face the dilemma other spouses face: Do they fi le taxes jointly or separately? While a combined return off ers a lower tax bill in most cases, it doesn’t hurt to run the numbers both ways before submitting your form to the IRS. Be sure to ask your tax preparer to show you the diff erence in fi ling jointly versus fi ling separately. Then, you can choose the best option for your family. We now have that choice and can choose the path that benefi ts our families the most.

GARY TANNER has a strong background in Information Technology and Property & Casualty Insurance. He resides in beautiful Mount Dora, Florida, with his partner of 30+ years and is an active member of the community and surrounding areas. Gary owns a successful insurance agency in Lake County and contributes each year to the local school system. He has written technology and lifestyle articles for online publications and writes blogs related to the insurance industry and local food scene.