Same-sex spouses lose big on taxes

[William769]

NEW YORK (CNNMoney) -- Same-sex spouses are paying as much as $6,000 a year in extra taxes because the federal government doesn't recognize gay marriage, according to an analysis conducted for CNNMoney by tax specialists.

While marriage provides tax benefits for many heterosexual couples, same-sex families don't enjoy the same perks because they are not allowed to file their federal returns jointly.

The imbalance persists despite increasing acceptance of gay marriage as a legal right. More than 12 states now grant full or partial marriage rights to same-sex couples, and a recent Gallup poll showed -- for the first time -- that a majority of Americans favor gay marriage.

But not the federal government, which is constrained by the 1996 Defense of Marriage Act. Even as more same-sex couples are able to file jointly at the state level, they are still forced to file as single when submitting federal returns to the IRS.

http://money.cnn.com/2011/12/26/pf/taxes/gay_marriage_taxes/

[xchrom]

1. Du rec. Nt

[RKP5637]

2. K&R !!! n/t

[Bluenorthwest]

3. People are not important, nor is justice, nor equity. All that matters is dogma.

We are ripped off so that the heterosexuals can indulge in the fantasy that Newt Gingrich is 'Sanctified'.
They steal from us to show they are moral. See how that works?

[greymattermom]

4. depends totally on income

In many cases married couples pay a penalty in taxes. if both have a good income that's about equal, their taxes will be higher as married than as two singles. Do the math for your situation, you'll be surprised.

[William769]

6. I have done the math.

Unfortunately since my life partner is no longer with us, I may never get the chance to put it in practice. Now thats a real crime.

[PeaceNikki]

7. Married couples are not taxed on spousal benefits.

If you read the article linked, it goes over several scenarios.

[Ms. Toad]

9. I have...

The penalty we paid two years ago because our marriage is not recognized was between $5000 and $6000. (And that was a quick estimate - as a former tax preparer, I know that with the income split we have it is likely I would be able to save between $500 and $1000 more in our state on state taxes by shifting deductions and certain income around.)

There are actually things other than earned income that come into play - dependents (and who can claim them), deductions, ownership of income producing property, things which create taxable events between unrelated parties that would not between a couple whose marriage is recognized) and so on.

[Occulus]

11. No, in fact, it doesn't.

[Bluenorthwest]

20. States with laws less bigoted than the Fed demand that we do our taxes first the Fed

way, then a second time for the State, 'as if' we were married. It is called 'As if'. At least in Oregon, we are required to 'do the math' for our situation, and also for the fantasy situation for the Fed, in which we are strangers to one another.
So dude. We are forced to do the math each way. So we know. This is our tax life and our money.
Did you know that we do 'as if' forms? 'As if you were really married'. Got it? We do the math, under command of law.
Straight marrieds are not required to file jointly, it is an option they get, and only they get.

[Fire Walk With Me]

8. Equal rights, now!

America is so hung up over body parts that they'd force a large percentage of their own population, their brothers and sisters, into misery and deprivation. Enough!

[Hosnon]

10. So gay relationships are subsidizing straight relationships.

Where's the 'bagger outrage? :-P

[Bluenorthwest]

18. Where is the Straight Democratic outrage? That the real question...

Why is OUR President spouting Sanctity nonsense? Why do other Democrats listen to that without laughing in his face? Those are the real questions.

[wildeyed]

12. Bigotry and greed seem to be inexorably connected.

Our prejudices give us a convenient excuse to rob our fellow citizens blind. Isn't great that god hates gays AND wants us to have their tax dollars

[MuseRider]

13. As here in the great state of Kansas

our ever growing Kansas Equality Coalition has found that our problem is not with the people it is with the government. It is really more complicated getting into the specifics but our polling shows that the majority of the people are with us by a pretty good margin. Marriage equality is our last hurdle here with the people but the government is woefully behind on all the other issues.

Progress with the people will change things but it is very very hard to move from the people to the government and that is a huge problem with this country.

Our government IS the problem.

[surfdog]

14. This is a mandate.

The Marriage mandate.

Get married and pay less taxes
Buy a house and pay less taxes
Have a child and pay less taxes

And now ... Get health insurance and pay less taxes

For some reason it's only the health mandate that upsets teabaggers , they could care less about the marriage, house, and child mandates.

[William769]

15. They only care about what they are told to care about. NT

[Iggo]

16. Equal rights for everyone, right now!

[William769]

17.

[Bluenorthwest]

19. Only Equal is Equal and if your God does not like equality, go get a new religion

and stop worshiping Mammon.

[SheilaT]

21. Ahhh, I can remember back a very long

time ago (around 1970?) when changes in the tax laws meant that married couples suddenly started paying a little more in federal taxes than two unmarried people with the same income. I recall the outrage of many married couples.

Which brings us directly to the appeal of flat tax rates. Everyone pays the same, even if the wealthy actually get a break, at least it no longer matters if you're legally married to someone or not.

Interestingly enough, over the years I've known a fair number of couples who refuse to get married because "It's only a piece of paper" and other such justifications. But then, there are no legal protections if one gets very ill, or dies. And yes, I do believe that same-sex marriages should absolutely be allowed, and be subject to the same rights, benefits, and even disadvantages as "traditional" marriages.