Monday, April 14, 2008

Gay couples often struggle more on Tax Day


As tax day approaches, some LGBT people and couples anticipate mad midnight rushes to post offices with returns, as they may be more likely to owe money because of lack of access to the benefits of joint federal filing. While possible for state income taxes in MA only, the Defense of Marriage Act of 1996 would preclude any such possibility for federal returns.

The major story "Gay couples face higher tax bills" appeared on CNN today, link here.

Some gay partners get health benefits through their partners' work, but they actually have to declare that as income, the article points out.

The federal government regards a gay couple as two separate households. However, there may be some circumstances where that is and advantage. There has always been a lot of noise from social conservatives over the "marriage penalty," as discussed here on Wikipedia, including uneven attempts to eliminate it. In earlier times, the marriage penalty could be significant enough that sometimes single people actually paid less in taxes.

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