Updated : Tuesday, p. The Cost of Being Gay A look at the financial realities of same-sex partnerships. The study, co-authored by three research and advocacy groups, lists many disadvantages that families headed by same-sex couples confront because the federal government defines marriage as between one man and one woman. Who should claim the children? As a result, these families often need to rely on costly accountants with expertise in this area. Besides creating obvious legal problems, it may also prevent the family from accessing certain tax breaks, according to the report. In fact, families headed by same-sex partners with similar incomes might actually save money by remaining single if pooling their income would push them into a higher tax bracket.
Analysis: Gay marriage rights may carry bigger U.S. tax burden for some
Analysis: Gay marriage rights may carry bigger U.S. tax burden for some - Reuters
Erin E. Quite the opposite. Windsor, which declared that the Defense of Marriage Act violated the Constitution. The ruling expands the rights of gay couples, but one consequence is that some couples will pay higher taxes. Miller, a software engineer who lives in Beverly, Mass.
Tax Planning for Same-Sex Couples
Over the last decade, a growing number of statewide laws have brought equality and protection to the lives of gay and lesbian couples. But every year the taxman brings an unavoidable reminder of the inequities that still remain. While couples in same-sex marriages, civil unions, and Registered Domestic Partnerships have benefited from equality in tax laws at the state level, their relationships are in no way recognized by the federal government.
Taxpayers also will have a harder time taking medical deductions this year. In other changes, the tax rate tables and the standard deduction have been adjusted for inflation, as has the maximum contribution to retirement accounts, including k plans and Individual Retirement Accounts. The Alternative Minimum Tax has been patched — permanently — to prevent more middle-income taxpayers from being drawn in. Tax provisions for the tax year were set by Congress last January as part of legislation to avert the fiscal cliff of tax increases and spending cuts.